Toronto Condos Reading List for Jan 23 2009

Looking for some good reading on Toronto Condos? Here are three very recent articles on the condo scene in the city worth a read:

• “Some See Condo Prices At Bottom” from today’s Globe and Mail.ÂÂÂ

The article suggests that condo prices have fallen to their lowest point, even though the confidence of buyers is still falling. If you think this idea is silly, you’re right. As readers of this blog will no doubt know, prices of downtown condos have only just begun to fall in the past 60 days or so (in the resale market). To say that prices will not get any lower is pretty optimistic. Brad Lamb is quoted as saying that days on the market (DOM) of anything less than 90 should be considered a seller’s market. Try telling someone who has had their condo on the market for the past 90 days that it is a seller’s market. Back in May 2008, Lamb was quoted as saying that 60 days should be considered a seller’s market. Now it is 90. What’s next? Time to face the facts: it is a buyer’s market.

• “Toronto’s development industry has tanked, councillor laments“, from Wednesday’s National Post.ÂÂÂ

Councillor Adam Vaughn gives a startling anecdote that speaks to the reality of the market right now: he says that he has not received an application for new development in the past 6 months, whereas for the previous 18 months before that he was receiving on average 5 per week. Wow.ÂÂÂ

• “Help is Far From Home” from Torontoist, published yesterday.

This is a commentary on the announcement that Home Depot is pulling out of their lease agreement with RioCan and Tribute Homes condo development in Queen West. The announcement invites speculation as to the real reason why Home Depot is pulling out. Is it just because of the economy? Is there something wrong with the site or the location? Is this a signal that the project will be canceled?ÂÂÂ

What do you think about these articles? Leave a comment or contact me anytime.