Latest news with #condomarket
Daily Mail
27-07-2025
- Business
- Daily Mail
Prediction about Florida's condo crisis
Experts have issued a chilling warning about the future of Florida's condo market as insiders warn that the next three months could bring even more instability. Florida's condo market is facing a full-blown crisis, Miami real estate insiders have told Daily Mail. In an exclusive interview, Joe Brikman, Team Leader at The Modern Day Team, and Luxury Development Specialist Rebecca Fischer explained the reality facing both buyers and sellers in what they describe as a 'cautiously optimistic' but quickly changing market. The top realtors are predicting major instability in the next three months as buyers are urged to avoid rushing into bad deals. 'The biggest piece of advice I'd give is: don't rush,' said Brikman. 'The deals are out there, but you need to do your homework.' 'Make sure you're working with an agent who understands what to look for especially when it comes to building financials, reserves, and upcoming assessments,' he said. 'It's not just about the unit, it's about the health of the entire building.' The duo outlined five crucial factors every potential Miami condo buyer must consider, starting with building reserves which are more critical than ever before, especially after the devastating 2021 collapse of condo building Champlain Towers South in Surfside (pictured: Champlain Towers before it collapsed). These are the crucial factors Miami condo buyers should watch out for right now: 1. Building reserves Make sure the building has strong reserves in place. It's more crucial than ever under new state laws. 2. Assessments Ask if there are any current or upcoming special assessments. These can cost owners thousands and often come as a surprise after closing. 3. Inspection and recertification Confirm that the building has passed its required 40-year (or 30-year in some counties) safety inspection. 4. HOA fees 5. Insurance costs Premiums across Florida are skyrocketing. Buyers should factor rising insurance rates into their long-term budgeting Looking ahead, the experts predict a continuously emerging market over the next six months with a major clash between old and new buildings. He said savvy buyers, who have done their research, will come out on top. 'Over the next 3 months, I think we'll keep seeing price adjustments , especially in older buildings that haven't addressed reserve requirements,' Brikman said. 'In six months, the buyers who've done their research and bought smart will be sitting in a great position,' he predicted. 'I think newer buildings and those with clean financials will stay strong, while others may continue to struggle.' Still, the market disruption has created some jaw-dropping opportunities. The Modern Day Team currently has a $350,000 four-bedroom penthouse in North Miami Beach, a $750,000 two-bedroom penthouse in Brickell, and a two-bedroom waterfront apartment in Miami Beach hitting the market soon. There are still areas with opportunity for buyers. Edgewater, parts of Downtown, Brickell, and North Miami Beach are emerging as value hotspots, particularly for new construction buildings. 'On the Resale We're seeing sellers get more flexible some are offering to cover closing costs, buy down interest rates, or even cover a few months of HOA fees,' he revealed. 'Cash buyers especially have more room to negotiate.' When asked to sum up this year's market in two words, the response was telling: 'Cautiously optimistic'. 'Buyers are still active, but they're more careful and they should be,' Fischer noted. 'It's a different kind of market than it was a year ago.' The 2021 collapse of a condo building in Surfside led to a new law that requires condo buildings to undergo structural inspections and shore up reserves. This has meant that many HOAs have been hiking fees and doling out hefty special assessments to comply with the new rules, which has reduced demand for condos. The Surfside condo collapse saw 98 die in the tragedy. There are now new plans for a $15 million-per-unit apartment block on the site dubbed The Delmore. The ultra-luxury high-rise is being constructed by Dubai-based developer Damac Properties after it purchased the land for $120million less than one year after the collapse on June 24, 2021.
National Post
10-07-2025
- Business
- National Post
Neil Sharma: Doug Ford has the power to bring down housing prices. Will he?
Article content It's no wonder, then, that the down payment for a home in the Greater Toronto Area is often in the six-figure range. Worse still, there's a major housing correction in the region's high-rise sector, a commonplace consequence of which is that home-buyers are unable to close on their purchases and are getting sued by their builders. Article content The condo market has softened because too many buyers have been priced out of the market and, among those who can afford to buy, living in a 500-square-foot shoebox that's inconveniently located next to a garbage chute and elevator isn't all that appealing — especially for the price of a house with a big backyard just a couple hours further afield. Article content Prime Minister Mark Carney has promised to address out-of-control development charges, but what that will look like is anyone's guess. However, the Liberals have demonstrated time and again that they understand housing about as well as Jim Cramer does stocks. Article content But this isn't the prime minister's problem to fix. Besides, he wouldn't be a Grit if he didn't just throw money at the problem, which is precisely the reason that the systemic issues within Ontario's housing market will persist if the Development Charges Act isn't further revised. Article content Doug Ford's legacy won't be written until he leaves office. So far, he'll be remembered for expanding a below-grade transit system that, by global standards, is bafflingly pathetic. But considering that Ontario had a net inter-provincial migration loss of 24,432 in the year leading up to Oct. 1, 2024, he might be remembered as the premier whose province's exorbitant housing costs chased an entire generation away. Article content Article content
Bloomberg
02-07-2025
- Business
- Bloomberg
Toronto Developers Stay Afloat Borrowing Against Unsold Condos
By Real estate lender Nav Deo has been taking a lot of calls from Toronto developers that suggest things are getting desperate. In the worst market for new condos in 35 years, more builders are seeking to borrow against unsold units in their own properties. Deo said so-called inventory loans make up 60% of his financing requests now, compared with almost none last year. If a developer needs the money to start a new project, he's happy to oblige. But most are looking for help to pay other debts, and he turns those down.
CBC
27-06-2025
- Business
- CBC
Metro Vancouver's condo market is slumping. Here are 4 key factors behind the slowdown
4 factors behind B.C.'s depressed condo market 17 hours ago Duration 2:58 Social Sharing After years of soaring prices and new builds, Metro Vancouver's condo market is showing signs of strain with projects stalling, sales declining, and developers hitting pause. Industry experts say it's the result of a "perfect storm" of four major forces converging: high interest rates and softening rental income, reduced foreign capital and lower immigration — all of which have created a challenging environment for both buyers and builders. "[We] are at a breaking point, the industry is doing terribly," said Anne McMullin, CEO of the Urban Development Institute. "It's not just that the industry is struggling; it's our inability to deliver homes that people can afford." Rising interest rates, declining rent Increase in borrowing costs has reduced affordability for buyers and made it more expensive for developers to finance new builds, says McMullin. Just five years ago, mortgage rates were near historic lows, making it relatively affordable for buyers to borrow large sums and invest in real estate. But those rates have climbed significantly, pushing up monthly mortgage payments. WATCH | Some real estate advisors question Surrey's decision to convert condos to rental units: Some real estate advisers question Surrey's decision to convert condos to rental units 3 days ago Duration 1:36 Surrey city council has approved changes to development applications for converting hundreds of condo units into rental units. As Pinki Wong reports, some real estate advisers think the shift will mean fewer homes for younger generations to purchase down the road. The result is higher "carrying costs" — the total expense of owning a condo, including mortgage payments, property taxes and maintenance fees. The City of Vancouver's 2025 budget includes a 3.9 per cent property tax increase and an 18.2 per cent hike in utility fees, together adding hundreds of dollars to annual expenses. "It costs more to build a unit or a home than the average person in the Lower Mainland can afford," said McMullin. "When it's costing more to build … we see project cancellations and we start to see projects not going ahead." At the same time, condo and rental price growth has stagnated, which means homeowners can no longer count on steady price growth to absorb the costs. According to the latest housing market update from the B.C. Real Estate Association, residential prices in the province in May 2025 were down 4.2 per cent at $959,058 compared to the same time last year, while residential sales were down 13.5 per cent. In Vancouver, average asking rents for a two-bedroom fell from $3,440 in 2024 to $3,170 in 2025, according to the latest figures from Statistics Canada. Though economists expect rates to begin to decline slightly in the second half of the year, persistent inflation risks and ongoing U.S. trade tensions could keep borrowing costs elevated for now. Decline in foreign capital and immigration levels A second factor cooling B.C.'s condo market is the decline in foreign investment, largely due to the federal ban on non-residents purchasing residential property in Canada. Initially enacted in January 2023 under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, the ban was recently extended by two more years and is now set to expire on Jan. 1, 2027. It prohibits foreign commercial enterprises and non-resident individuals from buying homes anywhere in Canada. The federal government says foreign ownership has fuelled worries about Canadians being priced out of housing markets in cities and towns across the country. But for developers, the measure has made it harder to access the capital needed to get projects off the ground. "While the intention is understandable, the current broad-brush form of the ban also limits access to foreign capital that could help builders meet presale thresholds and finance new construction," the Homebuilders Association Vancouver said in a statement. The association has called for a more flexible approach to the policy. The group suggests Canada could look to Australia's model, which allows foreign buyers to invest in new builds under specific conditions, such as requiring the units to be rented out or limiting resale timelines. Another drag on demand is a recent slowdown in population growth. WATCH | Metro Vancouver housing market looking good for buyers: analyst: Metro Vancouver housing market looking good for buyers: analyst 19 days ago Duration 7:46 A recent advertisement from a Surrey real estate agent which touted a 25 per cent discount on a housing unit highlights how buyers have an advantage in the current Metro Vancouver housing market. Mark Ting, a partner with Foundation Wealth and On The Coast's personal finance columnist, says that the trend of housing prices going down may be sustained. As of spring 2025, B.C.'s population stood at approximately 5.7 million. But the province recorded a net population decline, with 2,357 fewer residents compared to the previous quarter. The drop comes amid changes in federal immigration policy. Under its 2025–2027 Immigration Levels Plan, the federal government has introduced targets not only for permanent residents but also for temporary residents, which include international students and foreign workers. The plan aims to reduce temporary resident volumes to no more than five per cent of Canada's total population by the end of 2026. The Canadian Mortgage and Housing Corporation says the condo slowdown is likely to persist this year as supply increases outpace demand.
National Post
17-06-2025
- Business
- National Post
Condo sales plummet in Toronto and Vancouver but more resilient elsewhere
Article content The condo market in Canada's two largest cities has experienced significant decline from 2022 to the end of the first quarter of 2025, according to the most recent report from Canada Mortgage and Housing Corporation (CMHC). Though most smaller markets are still stable. Article content The report, released Monday, said that condo sales in Toronto are down 75 per cent. In Vancouver they have fallen 37 per cent. Article content Article content Those condo markets were hot until 2022, with lower interest rates enticing buyers, investors and builders. However, higher interest rates have reduced affordability for homebuyers and returns for investors. Article content Article content Overall, CMHC expects the housing market to grow as lower mortgage rates and changes to mortgage rules unlock pent-up demand. However, the recovery will be uneven with the condominium apartment market lagging in parts of the country where many condo owners are investors struggling with rising costs and softening rents. Article content Condo sales in the Greater Toronto Area (GTA) dropped 21.7 per cent year-over-year in the first quarter of 2025, with 3,794 units sold compared to 4,843 the previous year. Article content Inventory has surged in Toronto, with more than 20,000 unsold condo units, including pre-construction, under-construction, and completed units. Article content Article content Meanwhile, listings are up 25.2 per cent year-over-year in the GTA, giving buyers more negotiating power and putting downward pressure on prices. While average condo prices have begun to decline that trend is not as steep as the drop in sales. Article content In the GTA, the average selling price in the first quarter of 2025 was $680,146, a 2.2 per cent drop from the previous year. Article content Resale condo prices in the GTA have fallen 16 per cent from their peak in early 2022. Article content Echoing a CMHC observation, the TRREB says the GTA market is heavily investor-driven, with nearly 75 per cent of Toronto condos owned by investors. Article content Even more disastrous is that over 80 per cent of investors in new condos in the GTA are losing $1,000–$1,500 per month per unit due to high interest rates and rising costs. Many can't raise rents enough to offset losses because of rent controls and a competitive rental market.
