▪
Some of my colleagues may not want to believe it, but we are now in a new market reality. The extremely bullish market we have been experiencing for the past 12 months,
|
▪
at times accelerating at a break neck pace, has ended. Top-10 anecdotal signs that the market has already peaked: Fake’ developer websites for new developments are at an all-time high.
|
|
▪
These are websites set up by Realtors looking to capture buyers when a new development launches. Many of these sites are designed to mimic the developer’s official websites / registration forms.
|
▪
We saw this trend emerge right before the market dipped in mid 2008.
2.Developers are starting to LOWER their commission offerings to agents. Lower commissions can only mean one thing:
|
|
▪
2.Developers are starting to LOWER their commission offerings to agents. Lower commissions can only mean one thing: Developers believe it’s too easy to sell condos in Toronto right now.
|
▪
3.Positive cash-flow is now a complete impossibility at just about every new development or resale condo downtown. Investors with a traditional investment mindset are heading for other markets.
|
|
▪
4.One Bloor has about 700 units to sell, and the minimum up front investment is $100K. Demanding so much cash up front from buyers means the banks are restricting the cash flow to developers.
|
▪
5.Developers have been practically encouraging ‘flippers’ by offering $0 assignments during the first 90 days of buying into a new development..Listings for the GTA are up 48% for the first half.
|
|
▪
6.Resale sellers are holding off on offers, not getting an offers, then raising their asking prices in response. Buyers are moving on to other properties.
|
▪
9.Interest rates have risen almost a full 1% over the past few months and (most likely) will continue to rise. Questions? Comments? Got your own anecdotes or stats to add to this list? Call 4167234663
|