Recently, the focus of the discussion has been on the Toronto condo market. The Bank of Canada gives significant coverage about the December 2012 Financial Stability Review edition.
The risks that this market is facing have already crept to the discussions front-line on the condition of the real estate market in Toronto. According to Bank of Canada, the corrections of prices in particular segments with regard to housing market had put downward pressure on the price of the houses in general. With this, the condition of the condo market becomes an interest in most people in Toronto.
The year 2013, may considered as the crucial year for the condominium market since a lot of factors are lining up next to it. There are now 5 trends that you need to be watchful why you should not buy Toronto condo.
The sales of condo right now are getting weak
The existing sales of the condo unit right now in Toronto have fallen from 6% earlier and still go down to 9% in the same period of time. The story got worse when the sales of the new condominium market fell down to 53% last year.
Rapid rise of unsold condo
There is a weakening of sales about the condo right now in Toronto and this is clear evidence that there is an out balance in supply and demand.
The supply of new condos is unprecedented
The presence of the several construction cranes and booms that tower the skyline of Toronto, it is not a surprise for the residents that there are lots of condos that are still under constructions. There are at least more than 25,000 units are scheduled to be finished by the year 2013. In case this trend continues to persist until the end of 2013, these large volumes of potential condos could hardly be sold.
Condo prices are now beginning to fall
Due to the weak demand of the condo market, the prices began to fall in the late 2012. It shows that the resale price of the condos changes every year and also for the single family homes in Toronto. When the market trend is at zero percent, this simply means that the prices are continuing to fall as compared to the previous years. Right now, the resale prices of the condo units are lower as compared to previous years. There is also a major change in the recent inventory and sales trends.
For those prospective condo buyers who are looking forward to buy, this year 2013 would be the best year but still be mindful of the flow of the current market. You are still not sure if the price will fall this year or maybe perhaps next year depending on the trend. Just be watchful enough. However, for the condo owners, who want to sell their units, be mindful as well for the recent market trend and you need to set your expectations and prices accordingly. It’s best to be aware of the economy right now. There are still changes that are unpredictable.