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August 7, 2024 | Luxury Condo Sells for 21 Percent Loss

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

 

According to the Toronto Regional Real Estate Board (TRREB), the average sale price for all property types in the Greater Toronto Area (GTA) dropped to $1.106 million in July. On a month-over-month basis, the price fell by 4.7% from June.

On the supply side, new listings rose 18.5%, and the sales-to-new listings ratio was 33%, indicating a buyer’s market. See Toronto area home prices drop in July as real estate listings pile up.

Luxury properties are not immune from the realty slump unfolding.

A 37th-floor luxury condo in the heart of Toronto’s entertainment district that sold for a $320,000 loss is an example of a condo market that hasn’t been this tough in decades, Realtors and observers say.

The three-bedroom unit, on King Street near the site of the Toronto International Film Festival and across from Roy Thompson Hall, faced an uphill battle to be sold this week at $1.23 million – and that was after several previous attempts failed, said the listing realtor, Rebecca Romeo.

We’re in a buyer’s market all right,” Romeo said in an interview, pointing out that many other agents in the same building faced the same headwinds, as Realtors felt pressure to up their game to make any sale at all.

Her client, she said, was happy with the deal even though it was about 21 per cent less than the $1.55 million he paid for it in 2021. Here is a direct video link.

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August 7th, 2024

Posted In: Juggling Dynamite

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