something really serious is going on in the market. prices at Burano are dropping, as they say, like a stone. I just looked up listings at remaxcondosplus.com.
3+1 bedroom 779,000; another 3+1 listing 695,000;
2+1 bedroom 649,900; another 2+1 bedroom 619,000
Above listings are at 1 brokerage only. There must be listings with other brokers as well.
see for yourself at the link pasted.
http://www.remaxcondosplus.com/properties.2.php?showModuleDetails=propertySearch[/QUOTE
KA,
While your conclusion may in fact be correct, there are other explanations.
First of all, $619K for 1090 sq. ft is about $520/sq. ft. I don't know if this includes parking/locker but if not, it would be closer to $550K as is the $649K unit. No parking on a 2+1 unit I believe would be a mistake and therefore discounting of the unit price.
The 3+1 listings I dealt with in a previous post.
There may be something with the Burano building itself, the layout/view may not be good.
the end user may have had a change of situation. The investor may no longer qualify based on new mortgage rules for 20% down and 5 year terms. Flippers will want out. With the world bad news, stock market declines again, some people may not wish their money tied up.
Perhaps the building is not as nice as some had hoped or there are Burano/Murano specific issues.
Others more familiar with this project may be able to enlighten us.
Finally, now with prices hitting perhaps a wall, and without the frenzy of alot of advertising of new projects, agents involved buying to flip to willing investors, prices are approaching back to a more normal level based on resale.
10 years ago, new was cheaper than resale. Now, new is 15-20% more based on "future appreciation". If one just accepts that there will not be future appreciation, the resale market is $450-550/sq. ft so if one removes the future appreciation I don't think these asking prices are unrealistic.
If it turns out that the market has halted or is in the process of doing so, then as I said in previous posts, I would not be suprised to see a retest of 2007-2008 prices. Whether it goes even lower would remain to be seen. But those days of paying over $600/sq.ft for a mid range condo in Toronto I believe are coming if not already at an end.
I do plan on owning my burial plot though....
