Toronto condo investors hit by market at ‘recessionary’ level

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 50%

France Nouvelles Nouvelles

France Dernières Nouvelles,France Actualités

The Toronto condo market is deteriorating to “recessionary territory” as the number of investors losing money each month on newly built units surged last year.

Ron Butler, mortgage broker at Butler Mortgage, Bob Dugan, chief economist at Canada Mortgage and Housing Corporation, Lauren Haw, broker of record and industry relations officer at Zoocasa, join BNN Bloomberg to discuss real estate.

About 77% of investors with mortgages on newly built Toronto condos had negative monthly cash flow last year, up from 52% in 2022, according to a report from Canadian Imperial Bank of Commerce and industry consultant Urbanation. That means rents couldn’t cover ownership costs such as mortgage payments, fees and taxes.

The pain has thrust the market into an “economic lockdown” that doesn’t bode well for the housing shortage that’s been deemed a crisis by politicians across Canada. Condo investors play a crucial role in financing new projects, so the financial squeeze may result in fewer new units getting built in the coming years.

With all the stress in the market, Toronto’s condo investors have had less appetite to buy into new projects. Sales of new units — usually agreed to before construction even starts — plunged to the lowest level since the late 1990s, according to the report.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 83. in FR
 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Toronto's condo crisis signals more pain for housing affordability, rental marketVarious statistics show the GTA's condo market is 'clearly in recessionary territory,' and the nationwide housing crisis is at a level not seen in over 30...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Argos and TFC president leaves MLSE ‘by mutual agreement’ as Pelley begins to put his stamp on companyToronto FC and Toronto Argonauts president Bill Manning parts ways with MLSE
La source: globeandmail - 🏆 5. / 92 Lire la suite »