Real Estate Prices Dropping In Toronto

Despite what the headlines have been saying about Toronto prices staying firm, the evidence shows that prices for condominiums in the downtown core have already started a steep decline.

Two months ago a  two bedroom condominium (NO DEN) at 12 Yonge Street was selling for $450,000.  Today I saw a two bedroom PLUS DEN in the same building going for $435,000.  That is a drop of about $35,000 ($450,000-$435,000 plus $20,000 for the den)  in just 2 months.  This represents a drop in price of 7.5% ($35,000/$470,000).

Beware if you’re buying a condominium in Toronto, the bubble seems like it has begun to burst.  If you need to sell soon, sell now not later.  If you need a place to live, rent the condo because it is 25% cheaper than owning.

Now is a time to be smart not emotional about real estate.

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