Nervous Condo Consumers, Buy Big Names??
November 21st, 2008
Photo Courtesy of:veggiefrog
Another look at the state of the condo market, this time form an Eastern Perspective. Financial Post Article “Consumers nervous about buying condominiums” talks about the development situation in Toronto.
Although the article focuses on Toronto, the situation is similar across the country.
Although developers large and small both make a case for the fact that they can survive this market, I think the reality is that no one is immune to difficulty and there are numerous examples of developers of all sizes running into trouble, loosing financing, cancelling projects etc. Sure the larger ones may be safer, have deeper pockets and the ability to look long term, but again, there are examples that contradict this. Look at the troubles Millennium has had with the Olympic Village in Vancouver.
I think it is prudent for a buyer to look very closely at the developer they are buying form before making that decision, and quite frankly in this market I would consider waiting until projects are complete, there is very little advantage to buying pre-sale at this point.
November 21st, 2008 at 10:40 am
I completely agree with your last statement; why risk so many uncertainties when there is so much choice on the market right now.
In Calgary and Edmonton there are over 1200 resale condos on the MLS. Buyers often have more opportunity to negotiate favorable conditions when pursuing these properties, because of the different motivations of individual sellers.