Nearly 32,000 condos will hit the city and surrounding suburbs, according to data from condo research firm Urbanation Inc. That surpasses the previous high in 2020, when 22,473 units were completed.have ramped up borrowing costs and led to a drop in real estate sales and home prices., with five-year interest rates topping 5 per cent.
“Investors could be looking to exit before they have to close on the unit and they may face difficulties qualifying for a mortgage given what’s happening with interest rates,” Urbanation president Shaun Hildebrand said.This has led to an uptick in buyers trying to get out of their newly built condos by selling the right to buy their new unit, also known as an assignment sale.
Preconstruction condo sales in Toronto had been on the rise for years, driven by demand from investors and developers. But since home prices started to fall in 2022, it has become somewhat cheaper to buy an already built condo on the resale market. “People are saying ‘Okay, now it seems like I can get the better deals on the resale market, or the preconstruction assignment market,’” said Vicky Huang, chief executive of Bay Street Group, a real estate brokerage that works with Chinese buyers in the resale and preconstruction housing market.
And here I thought we had a housing crisis... oh wait how much are they?
Bankrupt.
A record number of developer defaults too
Nobody's buying, though