Toronto Condo Sales Plunge as Reported by Globe and Mail

Toronto Condo Sales Plunge - October 2012 (End of Third Quarter Results)

The Globe and Mail has reported that the Toronto Condo Market tanked by 20%  in the third quarter of this year, as listings increased and prices stagnated. I've been stating here based on previous articles and data posted by various real estate boards, that there is some cooling in the Toronto Market, which is going to put a cap on prices, for the time being.


From the Globe Article

Toronto condo sales plunge


According to new statistics released today, condo sales plunged 20.5 per cent in the third quarter of the year, to 4,541, from a year earlier  New listings climbed more than 6.5 per cent, to 11,456, while average prices were flat at $334,204.
“With more listings to choose from and fewer sales, condo buyers have not been as aggressive with regard to offers, and sellers have had to price their units competitively,” Jason Mercer, the group’s senior manager of market analysis, said in the report.
“The result was little upward pressure on the average selling price compared to last year. Given the supply of listings currently in the market place, the average rate of price growth for condo apartments should continue to lag price growth for low-rise home types over the next year.”



As far as I am concerned, a 20% drop is not a bad, thing, if it can stay at this level all the way down. This is a good natural cool. Although I will admit it was brought about in part by the federal government's changes to the rules affecting home buying. Which would have more impact in Toronto and Vancouver with overheated home pricing, than in Calgary as the article stated, seems to be building steam. Toronto had 27,000 new condo sales last year, a 20% year over year drop would put us at 22,000 units. Not bad, in my books.

 

Getting a Mortgage and Mortgage Insurance through Economical Insurance for financing a loan to purchase at FIVE Condos is actually a relatively easy process, and new rules from the federal government has required that company include new regulations, which have made the home loan and mortgage process a bit more difficult. Those changes at Economical Insurance include shortening the amortization period for which the loan can be held by the consumer, and the degree to which the property is financed by the mortgage. They have also increased deposit requirements to lift the loan insurance amount. Mortgage insurance from Economical Insurance is actually one of the major financing costs on home loans.

Investment Trusts have no taken to looking to purchase rental properties and acquiring mortgages through financing auctions by the banks looking to shore up their balances sheets in light of stricter government regulation. These regulations have actually made holding residential mortgages by the large financial institutions harder to hold. Currently investors are looking to increase their position in rental properties in Toronto, at the same time the federal government in co-operation with the financial institutions are making getting and qualifying for loans and mortgages more difficult

Economical Insurance : What is Condo Insurance?
Condo Insurance is required to protect your personal contents from theft or fire damage in your condo if these unforeseen events should happen you should make sure that you have adequate protection. Some items in your condo are will also be protected by your condo association insurance policy which covers the general building. The events that are covered by condo insurance include Fire, as well as Lighting. Other weather related causes such as Windstorms, and Hail are also covered. The major one that most people worry about is theft which is covered by condo contents insurance policies.

Toronto Condo Market Report – February 26, 2014

Toronto Condo Prices continue to trend upwards, as sales also move up with general improvement not only in the Toronto economy, but the nation as a whole. Condo sale prices have not increased to the same degree as detached family housing, due to new supply coming onstream. However fears of a condo bubble, have not proved accurate, as trends move to the upside. Average Home prices are still up in Toronto, and look like they will continue to rise for the remainder of 2014. Year over year, detached housing prices increased by over 14%. Just amazing.