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.