Condo Sales Sympathy – NOT!

By Shawn Lackie

If you pick up a paper or listen to the real estate news, anywhere these days, there is constant talk about the softening condo market. Too bad. I have as much sympathy for these condo developers/sales as I do for Donnie Trump when someone says no to him and he has a tantrum.

Condo developers have been gouging consumers for years. They are finally starting to see the blow-back from the overbuilding which has been happening for at least the last 20 years. Condos used to be a very viable option. They were a good starting OR finishing point for people looking to live in certain areas. I'm not sure they were ever thought of as the main place for people to consider to live long term.

Along came the pandemic, and BOOM! Sales flourished and consumers lined up to get into the game. Condo sales, like everything else in the 2019-2023 era, went nuts. Bidding wars and crazy prices were being paid and in the midst of all that were the dreaded investors. Never forget the offshore buyers who really wanted to capitalize on the domestic market.

Fintrac anyone? Still, away we went. I had the chance to represent a few buyers, who wanted to rent condos in downtown Toronto, and it was insane. A 460 square foot unit, on the 28th floor, with NO STORAGE and NO PARKING, and yet they were demanding $2,500 a month. The biggest room in the unit was the bathroom. Go figure.

Any of the owners I have dealt with are, for the most part, money-grubbers and have little room for negotiation. They want what they want, and if you don't want to pay it, move to the left; the person behind you will pay.

So, it has been refreshing in the last few years to see the glut of condos on the market, both for rent and for sale. This indicates, the condo market has reverted to a buyer's market, characterized by both declining sales and rents.

A client of mine was told they were being offered a one-bedroom unit for $3,000, essentially being done a favour. That's just silly.If you took the time to look at just who the owners are, of many of these downtown condos, I think you'll find they are mostly offshore. 'Investors' which means massive investment properties. You will never get a break dealing with these people, they have one goal in mind, only one goal, to make money.

So the fact there are tons of units available, for both rent and sale, comes as bad news to these 'Investors.' Too bad for them. Like I said before, they have had things their own way for years. The tide is shifting, and I don't see this changing anytime soon. If you were to see what's happening on the Lakeshore, in Toronto, you'd scratch your head. Why are there so many buildings? There was a quote, not so long ago which said, there were more cranes up in Toronto than in New York, Chicago and LA combined. That's just crazy. People have been leaving urban areas and testing rural lifestyles. It's time to cut back on the downtown construction, there may not be enough buyers to fill the need. Wake up, builders.