So, our "beloved" condominiums... and generally, what's happening not just in the Toronto real estate market, but in the Ontario market as a whole. Written at the request of my 7 subscribers who closely follow the current market in "hot" mode.
Condominium developers in Toronto are finding it harder than ever to sell their properties, as this type of housing market is completely, I would say, at rock bottom, forcing some developers to offer desperate incentives or even halt construction.
One sign of the very alarming situation, caused by high interest rates and overall housing unaffordability amidst consistently high real estate prices, is the huge number of residential projects that have fallen under external management due to the inability of major firms to handle construction debt obligations. Just a couple of weeks ago, several of my Facebook friends and clients reached out to me for clarification. Well, anyway...
The latest such stagnating projects are two new residential complexes in Brampton by local developer Maplequest Ventures Inc.
The developer responsible for the projects at 10475 Heritage Road and 11258 Torbram Road in the GTA seems to owe nearly $90 million, which it raised from creditors, and now cannot repay this debt. Creditors, in turn, initiated judicial management of the property to try to recover their funds.
As a result of this decision, two more large projects under construction, this time in Caledon, have come under external management. Their developer (Digram Developments Caledon Inc.) was a guarantor for Maplequest's debts.
Under current law, the external manager of all these properties can now manage them at their discretion, which may mean selling them, leaving the fate of thousands of apartment buyers uncertain.
I can explain what this "uncertainty" means to anyone interested over the phone at 905-909-8888 .
The same situation is observed with three condominium projects in downtown Toronto (including the famous The One at the intersection of Yonge and Bloor Streets), residential buildings in Vaughan, Ajax, Barrie, Peterborough, Kitchener, Mississauga, a shopping center in Markham, and other projects over the past few months... In short, fun times .
And what about the resale market? Here, in both the condo and the so-called "freehold" segments (detached houses, semi-detached, and townhouses), the market is clearly oversaturated. The inventory of homes and apartments for sale has reached record highs, and properties are staying on the market significantly longer than just a couple of months ago, indicating that the "housing crisis" in the region is more related to prices than a lack of supply.
Well, and of course, it's worth praising myself... Today (for my clients) the average "standing" time of a house on the market is less than 20 days. Why? The right sales techniques. For those, call me too... Best wishes, and until the next review...