The malaise of the G.T.A. condo market is no longer a secret!
If things do not change, casual investors within the G.T.A. could stand to lose $12–15 billion in equity over the next 24 months.
To cushion the blow for developers and lenders, the Gnomes of Bay Street have created a new form of financial alchemy.
Example: Developers and banks are now using “Blanket Appraisals” to cover their losses.
Simply explained:
Condos are being appraised at their original selling price — let’s say $1,250 per sq. ft.
The present reality is that these identical units are now selling for approximately $850 per sq. ft., and still falling.
The purchaser is generally encouraged to cover the 30% spread (if possible), meaning their new blanket mortgage reflects the original, much higher price.
Conversely, there are a limited number of locations throughout the G.T.A. where terra firma homes are still landing solid pricing — albeit in line with late 2023 and early 2024 values.
If you’d like greater clarification on the nuances of the current housing market, please contact any of our seasoned Realtors and Appraisers for a confidential conversation.
When experience matters, call Heritage Caledon Realty & Accurate (Peel) Appraisals Inc.
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