So, um, when are condo prices supposed to drop again?

[JayBee]

I've been hearing about the prices dropping but I'm still seeing the same overpriced condos. Some I've seen on the market for a few months with no drop in price.

Maybe the real estate agents on the board can clue me in.

 

[jaycola]

If you bought your condo for $300,000 with 10% down (as many did) You have a mortgage of not much less than $270,000 right now.

Say it's only worth $279,000 now with a reduction in value of a modest 7%.

If you pay the realtors 4.5%, your lawyer $1400, the bank a early discharge penalty of $10,000 you are in the hole another $15,000 after closing and paying off the mortgage with the proceeds from the sale.

You turn a $300,000 home into a $45,000 net loss very quickly by selling.

Unless you have to sell, holding it till you get your price makes better economic sence.

 

[cdr108]

I've been hearing about the prices dropping but I'm still seeing the same overpriced condos. Some I've seen on the market for a few months with no drop in price.

Maybe the real estate agents on the board can clue me in.

I'm not a realtor but I totally see what you're talking about.
I've searched MLS and most properties (houses and condos) are overpriced.
However, there are sometimes realistic value/bargain properties ... those tend to sell very quickly.

I saw a 2 bed + study ~930 SF unit in Cityplace West 1 for $300K (no parking or locker) and 2s semi in Cabbagetown for $420K; both sold within a week.

The overpriced properties will sit indefinitely and those sellers will be chasing the market down if they don't come to terms with reality.

The same situation happened in many areas like FL ... in their 1st year of RE correction/crash, sellers that turned down offers which were not 'acceptable' found they were still trying to sell the place (if not already repossessed by the banks) more than a year later at DEEP discounts of 25%+ with no buyers even looking.

 

[JayBee]

I'm not a realtor but I totally see what you're talking about.
I've searched MLS and most properties (houses and condos) are overpriced.
However, there are sometimes realistic value/bargain properties ... those tend to sell very quickly.

I saw a 2 bed + study ~930 SF unit in Cityplace West 1 for $300K (no parking or locker) and 2s semi in Cabbagetown for $420K; both sold within a week.

The overpriced properties will sit indefinitely and those sellers will be chasing the market down if they don't come to terms with reality.

The same situation happened in many areas like FL ... in their 1st year of RE correction/crash, sellers that turned down offers which were not 'acceptable' found they were still trying to sell the place (if not already repossessed by the banks) more than a year later at DEEP discounts of 25%+ with no buyers even looking.

Yea, I've seen some deals, and they have lasted just a couple days on MLS. A couple of Cityplace 1+den's were scooped up within the week. Then there are studios going for $220K that sit.....and sit...and sit...

I was looking for a resale place, but I'm probably going to purchase new. The prices are pretty much the same.

 

[urbandreamer]

A house on Maria St just sold in under 24 hours--I was planning on taking a swing at it. $340k iirc, much better value than a condo box.)

But to satisfy the topic: wait for Fall 2009. (Spring is never a good time to buy.)

 

[urbandreamer]

^Ha, Forest Hill or the Avenue?

I am surprised Churchill Park condos @Spadina and St Clair is going ahead--crane is being installed soon. (Don't see a thread for it on UT.)

How much psf is a house made from Home Depot plastic and board worth anyhow?

Here's a little joke I just thought up: What happens to flippers in 2009? They go for a swim...

 

[urbandreamer]

Here's a bachelor 1 bedroom in Malibu, which is overpriced by at least $40,000:

http://www.mls.ca/propertyDetails.aspx?propertyId=8035420

many many units to pick from in this investor-majority-owned condo building!

So the base price for a one bedroom Toronto condo is currently around $165,000 it seems....soon to be $120,000?

 

[cdr108]

Here's a bachelor 1 bedroom in Malibu, which is overpriced by at least $40,000:

http://www.mls.ca/propertyDetails.aspx?propertyId=8035420

many many units to pick from in this investor-majority-owned condo building!

So the base price for a one bedroom Toronto condo is currently around $165,000 it seems....soon to be $120,000?

Wow, that looks cheap and cramped.
I wouldn't even offer $99K for that considering it's probably ~ 350 SF.

What is the size of the 'base 1 bedroom' you refer to UD?
Developers are passing off 450 SF as 1 bedroom now, 500 SF as 1 bed + 1, 650 SF as 2 bed, etc.

 

[urbandreamer]

$120,000 for a junior 1 bedroom @450sf is $270 psf. That is where most condos will end up within a year, I predict--$300 psf. (Average condos, not luxury or well-designed product.)

In investor-ridden buildings like Malibu, yeah, sub-$100k for that shoebox will be the new reality imho.

 

[carturo15]

Here's a bachelor 1 bedroom in Malibu, which is overpriced by at least $40,000:

Could you please provide your market and technical information to support why this unit is overpriced by $40K? as far as I know there are buyers for this type of units in downtown and they are willing to pay close to that market price. I just sold an unit in Cityplace on a lower floor for over $400 psf without parking or locker. believe it or not there are buyers out there for these type of unit in downtown.

 

[Josef]

Wow, included are six new appliances... Who's the idiot that decided to go
cheap and not purchase at the very least, stainless steel or black? Horrible pictures, no back splash in the "kitchen" and splashed with white paint everywhere. Little things like that count, especially in a little place like that one.

Regarding prices, like I always say, have a glance at Park Lake, as they have
decent dropped prices. Starting at 187,400 for 575 SF 1 Bedroom at Lakeshore with a nice view and many luxury standard features. Try finding something new with that price tag in a decent area with nice features.

 

[simuls]

You will not see a price drop in downtown TO below $350/ft for a mid-level condo. I'd be surprised if it went below $400 at the lowest point. In King West, for eg., two condos sold in my building in the past week both for between $450-470/ft, down less than 7% from market peak. This has also been the range for the past 3 months. I do expect further price deterioration, but not more than another 10%. Look for bottom levels mid 2010-mid 2011. As for new, most builders do need to readjust their asking prices downtown as they're simply ridiculous at around $600/ft for an equivalent product. Just my opinion.

 

[markel]

Waterparkcity

Would Waterparkcity be considered an "Investor-ridden" development. I currently live there and am thinking about moving out. Baby on the way! We have an approx. 680sf 1+1, 2nd floor. We were talking to the agents and they are talking about a list price of $270,000? Just wondering if you guys think it will move?

 

[simuls]

At 270 that should move depending on your layout, finishes, etc. The biggest problem with Waterpark City imo is it's location.

 

[cdr108]

Would Waterparkcity be considered an "Investor-ridden" development. I currently live there and am thinking about moving out. Baby on the way! We have an approx. 680sf 1+1, 2nd floor. We were talking to the agents and they are talking about a list price of $270,000? Just wondering if you guys think it will move?

From what I've heard and seen, I think it is 'investor-ridden' but I'm sure you could find out by asking your RE agent.
Have them give you a COMPLETE list of product for all the available units for sale AND lease in the complex. How many towers are there - 5 ???

You didn't mention if you had parking and locker?
I'm assuming you haven't bought another property already?
Are you looking at buying or renting instead?
How quickly do you want to sell - 30d, 60d, 90d, +?

I somewhat agree with simuls, @ $270K it's priced about right in the current market (but over-priced in general IMO but that's another story) and should move if you have a good layout, finishes, etc.

Problems I see:
- low floor, ie. noise and no view;
- units didn't come standard with features like s/s appliances, granite countertops, etc;
- i've seen many Waterparkcity floorplans and many lacked sufficient closet/storage space;