The news on the condo market this year sounds like a broken record – slowing sales and increasing supply in an environment of stagnant incomes and high household debt. So the question is, what is happening to prices?
Well, not a lot – so far. This chart shows what 2 bedroom condos have sold for through MLS this year in two areas, downtown lakefront and Yonge & Finch, used as proxies for the Toronto market as a whole.
What we see is a price trendline that is relatively flat, with a slight downtrend. In other words, the prices on resale condos have not fallen off a cliff.
Let’s look at another graph, the time they’re taking to sell.
Oops – not good. Time to sell has historically been a precursor of declining prices, with a 6-month lag being typical.
So what’s a buyer/seller/renter to do?
Well, if you’re thinking about buying, you might want to hold your fire, keep your powder dry, as they say. Except … if a developer is offering big incentives, that could be a good deal right now.
If you’re an investor and you want to time market – you know, buy low sell high – well, you might want to sell soon. (If you want to know what your actual return on investment (ROI) is, I’ve got an easy-to-use Excel spreadsheet. Ask me for it.)
If you are an owner-occupier, you’re happy where you are, and the sell-rent-buy cycle is way too much hassle, enjoy!
If you’re interested in buying into a new development, talk to me about the special incentives I’m offering on top of what the developer is offering. I’ve got incentives for resale condos too, you know, the kind you can see and touch so you know exactly what you’re getting.
If you’re interested in selling, I can help you keep more money.
If you’re not sure but you’re thinking about it, let’s just talk. You don’t need to worry about being pestered, any more than this blog pestered you. That’s not my style.
Real Estate Sales Representative