Think the condo market is crashing?
Despite headlines screaming "crash," the truth is far from it. Let's clear up some misconceptions. Firstly, the resale market is actually pretty solid right now. Properties are moving, offers are being made, and yes, deals are closing. Now, you might have heard that the rental rates aren't making sense for investors—well, that's partly true. But it's not because the market is bad; it's because the cost of capital has gone up. High interest rates are the real culprit here, squeezing out smaller investors who can’t cover their costs. But here’s the kicker: the market itself isn’t crashing. The data shows that average rents in major cities like Toronto are adjusting, not plummeting. And as for new construction projects? They're still happening, but yes, they're more expensive due to rising costs in materials, labor, and land. So, before you buy into the doom and gloom, check the facts and understand the real dynamics at play.
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