🚨Toronto's New Condo Market Collapses
Sales down 84%, future supply at risk as builders face soaring costs.
This looks bleak….. So let's get at!
THREAD🧵 pic.twitter.com/S4i9PC2z3v
— Shazi (@ShaziGoalie) November 22, 2024
2/ 🏢 Condo prices drop:
Down 1.6% year-over-year amid frozen buyer activity.
— Shazi (@ShaziGoalie) November 22, 2024
4/ 🕒 Inventory levels climb:
14.4 months of supply, up from 13.8 in September; a "healthy" market is 9-12 months.
— Shazi (@ShaziGoalie) November 22, 2024
6/ 💸 Rising costs:
Builders struggle with soaring construction expenses, taxes, and fees, making affordable new homes a challenge.
— Shazi (@ShaziGoalie) November 22, 2024
— Shazi (@ShaziGoalie) November 22, 2024
“The GTA new home market remained practically frozen with inaction in October 2024,” Edward Jegg, research manager with Altus Group, BILD’s source for new home market data, said in the report.
“However, conditions are starting to align with inflation in check, resale activity surging, interest rates falling, and upcoming changes to mortgage rules all pointing to buyers jumping back into the new home market in the coming months.”
Recent data indicates buyers are entering the market again after a sluggish 2023 now that the Bank of Canada has had four consecutive interest rate cuts boosting home resales. It could bring buyers back into the new home space, BILD says, especially next year after more rate cuts.