Toronto’s condo sales soar thanks to regulatory efforts to cool the resi market

“Honestly, this scares me."

New York Weekend Edition /
Apr.April 01, 2018 02:03 PM

Drake. (Credit from left: freestock.ca, thecomeupshow/Wikimedia Commons)

Regulations can’t hold Toronto’s condo market down.

Condo prices have risen 20 percent compared to February last year, according to Bloomberg, while sales of detached homes sank by more than 10 percent. Regulations were supposed to decreases for both markets, but an unexpected twist has occurred.

On January 1, new mortgage regulations that required buyers to prove they could afford payments at least 2 percentage points higher than the price they go into contract at, as Bloomberg reported, which, in addition to higher interest rates, was supposed to dampen prices.

Instead, it’s pushed would-be homebuyers into the condo market and investors into becoming apartment landlords.

For market that’s constantly referenced as a bubble waiting to burst, some agents are getting nervous.

“I’ve been looking at the condo market for years and I’ve been waiting for it to correct and it’s just not happening,” said agent Patrick Rocca to Bloomberg. “Honestly, this scares me. When you have condos selling at C$1,000 to C$1,200 per square foot for resale, that’s mind-boggling.” [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
Alexanders will be metaverse’s first luxury brokers
Alexanders will be metaverse’s first luxury brokers
Alexanders will be metaverse’s first luxury brokers
Richard Lampen and Howard Lorber
Public relations: What’s next for an independent Douglas Elliman?
Public relations: What’s next for an independent Douglas Elliman?
More contracts signed in the city for more expensive homes (iStock)
Manhattan condo signings jump 65% in November, led by priciest homes
Manhattan condo signings jump 65% in November, led by priciest homes
Skyline Tower in Long Island City and 200 East 83rd Street (Hill West, Rockefeller Group)
Manhattan logs busiest month for new development sales since April
Manhattan logs busiest month for new development sales since April
East Village landlord collected rent from deceased CEO’s account, lawsuit says
East Village landlord collected rent from deceased CEO’s account, lawsuit says
East Village landlord collected rent from deceased CEO’s account, lawsuit says
Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
(iStock/Illustration by Kevin Rebong for The Real Deal)
Watchdog org: Put home-sale commissions in buyers’ hands
Watchdog org: Put home-sale commissions in buyers’ hands
Photo Illustration of Elon Musk (Getty)
Musk could save $2B in California taxes on Texas move
Musk could save $2B in California taxes on Texas move
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...