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6 years ago

Interesting that condos have
Interesting that condos have fallen sharply two months in a row. Are higher and lower ends of the market diverging?

Anyway, 10% fall in condo prices in ~2 months (basically, erasure of the y-o-y gains) is a good start … hope the salutary trend continues.

6 years ago
Reply to  spdrun

Official 4 year seasonal low
Official 4 year seasonal low in active ex-C inventory, and still healthy sales.

Spd, Condos are up 6% YoY.

7-8% is the new normal and reflects rent increases, lack of good alternatives investments, and scarcity.

6 years ago

If one extrapolates the peak
If one extrapolates the peak in annual resale inventory, in 5 years, there may only be 3,000 homes for sale during the peak late summer period, which relative to population would be even lower months of inventory. The lows of the year may be below 2,000 available which really isn’t much to choose from.

Personal theory is that several hundred homes enter the permanent investment property category every year given the numerous tax benefits, rising rents and relatively poor comparable investment alternatives.

We have a long way to go to reach a true bubble like Toronto was earlier this year or Vancouver but I guess anything is possible. Oddly, in the era of bitcoin, having an asset that only appreciates by 5-7%/yoy seems very modest and conservative.

Do we have any demographic info on the age of the “free and clear” homeowner, thinking about the scenario where perhaps the kids have grown up/out and now they inherit the property. I’m guessing in many cases the correct economic decision would be to rent it out or move in to use for ones own needs (after parents pass away).