The Loonie Hour Toronto Condo Completions are Heading to Zero by 2030
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Dec 6, 2024 The podcast dives into the alarming decline in Toronto's housing market, with new home construction sales hitting a 27-year low. Former BoC governor Poloz shares insights on the looming recession and economic challenges, including Canada Post strikes impacting small businesses. Interest rate predictions spark discussions about their potential effects on the economy and currency. The hosts also touch on the resilience of Canada's equity market while navigating complex GST regulations and the changing landscape for public services.
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Toronto New Construction Slump
- Toronto new construction home sales are at 27-year lows.
- Completions may reach near zero by 2030 due to low pre-sales hindering financing for new projects.
Housing Starts as Lagging Indicator
- Housing starts lag market sentiment by 3-7 years due to lengthy processes from land acquisition to construction.
- They reflect the developer community's sentiment from years prior, not current market conditions.
Vancouver Condo Loss
- A Vancouver condo, pre-sold for $2.7 million, resold for $1.8 million, representing a significant loss.
- This example highlights the potential for substantial losses in the pre-construction market.