As preconstruction condos become less and less profitable, investors are leaving the market in droves.Chris Young/The Canadian Press
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This year, preconstruction condo sales in Toronto are at their lowest level since the 1990s. As they become less and less profitable, investors – who made up the majority of buyers – are leaving the market in droves, leading developers to cancel projects and leaving buyers with mortgages worth more than the value of the property.
The real estate market in Canada has been in flux since Donald Trump announced tariffs on Canadian goods – including building materials – earlier this year. Prospective homebuyers have been opting to sit on the sidelines and wait for the economic uncertainty to end, which has caused sales to drop and supply to steadily rise. But what does the rest of the year hold for buyers and sellers in Canada’s condo markets and beyond?
Builders taking on more debt as some in residential sector struggle
On Sept. 25 at 11 a.m. ET, real estate reporters Rachelle Younglai and Shane Dingman will be answering reader questions on the state of Canada’s preconstruction markets, its effects on housing in general, and what it means for Canadians looking to buy or sell a home in the coming months.
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What will it take for investors to return to the preconstruction condos? How are developers reacting to the change in the market? Is now a good time to buy or sell? Submit your questions now.
Ask your questions about Canada’s preconstruction condo market
On Sept. 25 at 11 a.m. ET, real estate reporters Rachelle Younglai and Shane Dingman will be answering reader questions on the state of Canada’s preconstruction markets, its effects on housing in general, and what it means for Canadians looking to buy or sell a home in the coming months. Submit your questions now.