Long term our condo resale market is in great shape. Granted the pre-construction market will have to reinvent itself but that’s another story for another day.
First off, transportation problems are great for our market. Traffic jams exist in rush hour coming into and out of the downtown core. While baby boomers endured years of commuting, the next generations will not. Many of the young people living downtown today work in the 905. But they are all looking for jobs (and are willing to take less pay) to work downtown. We had no new office buildings downtown for over 15 years. Now there are 15 completed and under construction. Smart companies have figured this out and are relocating downtown to where their future employees want to work.
Thanks to Mayor Ford, even our public transit is suffering. Hence many of these same employees will prefer to walk to work rather than risk streetcar follies. Another reinforcement of the condo lifestyle.
While everyone wants the detached and row house downtown, the limited supply is pushing prices out of reach for 95% of those who want to live downtown. So where will these people end up? Just look to other major cities for the answer.
Finally all the naysayers who say condo prices are going to crash and you should rent instead, need to ask themselves: where? There are no new apartments and our two downtown universities have stopped building residences. I guess the answer is condos. Rents right now are a bargain and with vacancy rates under 1%, there is only one way for rents to go –up!! And they will have to rise faster than condo prices to bring investors back into the condo market!!