Yes the Condo Market is dropping; But not everywhere

 

There are a number of High Density Condos that have been in the news lately for different reasons; 

AIRBnb Units owners in fight over ByLaw changes that prohibit  AIR bnb operators access in certain condo corporations.

Vacancy Rates Cause 20 - 30% drop in Rents.  

Covid has caused an exodus from the core with people moving elsewhere to work from home.  This has driven the prices on RENTALS down by almost 30% in some neighbourhoods.

While this is a catchy headline its not a universal axiom.

Barry Lebow, Broker with RE/MAX Ultimate  posts...

It is easy to look at data and accept the results at face value. When those of you who are interested in the Toronto condominium market please understand, the data is raw, not pure. It is not filtered.

If I were analyzing the data I would break it down to:

1) units that lack balconies

2) units that are under 600 square feet

3) units between 600-800 square feet

4) then in variances of increasing size

5) locations, with the inner city skewing the data

In general, we have not noticed declines in livable, home condominiums. Livable to me, at least 850 square feet and with a balcony.

If we draw a boundary of say Eglinton Avenue across Toronto and look at the data south of that line versus north of that line we would have different results. There would be some influence from the overly high density Yonge-Eglinton sector though.

As one pushes into the Toronto suburbs of say Willowdale, Downsview, etc. one does not notice a decline in pricing.

Data at best is a stew with all ingredients tossed in to blend but mathematically data does not truly reflect anyone segment of a market.

Units that are at 1,000 square feet, 2 bedrooms with a den are not subjected to the same FLEE or Fight mentality; it houses families.

Units with a view of Lake Ontario have not been impacted at all.  In My building there are 279 units.  At the last disclosure statement there are only 35 Rental Units.  Slightly above 10%.

MOVE UP Home Buyers vacating the downtown core are fighting a headline but are having difficulty getting showing to sell.

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