How a slow housing market is forcing sellers to get creative

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we’ve never seen this many condos listed for sale in Toronto this is largely driven by uh a higher number of investors wanting to exit the market the head of real estate analysis firm ropy says many investors have decided that owning rental units isn’t worth it high rates really impact affordability and buying Behavior you know it’s a tougher Market to rent in so some investors are just pulling the plug and wanting to get out broker devel Morrison says it’s a far cry from the years of bidding s and skyrocketing prices a lot of them are not selling uh it’s very difficult to get even showings on condos forcing her to get creative with a rare reverse offer that’s where the seller entices a prospective buyer with a discounted price and a real willingness to bargain quite frankly my client needed to sell her condo and the condo Market wasn’t moving so as an agent I just needed to get creative to get the get the job done new condo sales in the Toronto area dropped to the lowest quarterly total since the financial crisis according to a new report by Urban Nation but even though sales are down prices continue to climb thanks to higher construction costs even though the Bank of Canada announced the smallest of rate Cuts earlier this month and expectations are high for another cut in July many real estate experts don’t expect that to be enough to make a meaningful dent in the Toronto condo Market glut they’re expecting rates to stay higher for longer you know if that happens we’re not going to see this big rush of buyers jumping in setting up a buyer market and potentially more reverse offers Ann gaviola Global News Toronto

A flood of listings is creating a buyer’s market in some Canadian housing markets and forcing some sellers to get creative to land a deal.

In Toronto, where there is a plethora of condos, for example, some sellers are even letting buyers know they’d go lower than asking – in what’s called a “reverse offer.”

But even as condo sales are down, prices continue to climb due to high construction costs. Global’s senior business reporter Anne Gaviola reports.

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30 COMMENTS

  1. Yes, cause they're moving somewhere else in Canada.Where it's not so populated.Literally your neighbors, not America, literally Canadian neighbors from different continents.Literally just not even that far from you

  2. Investing can be risky; but hey, at least you had money to invest! Real estate is better when interest rates are low, but inflation is going to be tough to bring down and interest rates will be too high near term for most condo buyers. The only way to clear the condo market is for prices to drop. Not rocket science.

  3. Not long now until we start seeing condos and houses being sold at a loss.

    That’s what happens when investors and big businesses buy out all the real estate and jack up the prices to where nobody can afford them.

  4. 0:40 “Forcing her to get creative with a rare reverse offer. That’s where the seller entices a prospective buyer with a discounted price and a real willingness to bargain.” Unlike the previously fake willingness to bargain. *Bargaining is not “getting creative”* it’s selling like a normal person instead of a greedy investor.

  5. People are going to think this is a good thing because the whole picture eludes them. A quick example for everyone. 2 weeks ago we had a housing shortage. People cannot afford to rent or buy. Who is going to build a house they cannot sell? Why would you risk your finances to build in Canada when the common theme is more taxes for everyone. Will people have more money to buy a house after then next tax increase raises the price on everything?

  6. So the new thing is that we are spinning price reductions as a reverse offers? I guess you have to say something to not look stupid when you claim that prices are going up.

  7. So what if the prices are not going up as fast as they have been…and people with money to buy an "extra" condo for investment want to cash in, prices are not going down or back to what they used to be. Will I get a condo for $80K like when I first graduated? No. They'll still be around $600K to live in a box and pay maintenance fees at rates that used to be people's rent.

  8. its all going to burn…anyone who thinks the housing market isn't DOOMED, owns a place that they can't afford and are in denial. They can prolong it as long as they want but it's going to happen.

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