23 Jun What’s happening with downtown Toronto Real Estate?
In the first half of June, inventory built up quickly. This past week was rather slow in terms of new listings downtown, although this could be attributed to seasonality. Certainly, I am seeing a lack of quality listings come on the market. The quality listings that do come on the market downtown are being snapped up, contrary to popular sentiment. Overall, downtown real estate, especially in the condo sector, continues to be resilient.
Many professionals, including myself, thought the condo market would feel the largest impact from the non-resident tax, but it has been the opposite. First-time buyers are driving the condo market and the non-resident tax didn’t effect their budgets. It appears they just want a place to live and don’t care much about the politics. Renting is still obscenely expensive downtown.
The best deals right now are in homes that need work or are investor oriented. The smart money is cherry picking. As time passes, the shock & awe of the non-resident tax should fade. The Bank of Canada raising interest rates in the fall could put a spark back into buyers who want to lock in a good rate. Contact me for more analysis.
-Nick, June 23.