Is the Toronto condo market going to rise or fall? Are interest rates going to rise or fall?
Absolutely yes and no.
Parts of the market will probably soften, parts will remain stable, and there are even some areas where there will be an upside.
Rates may rise, and someday they’ll drop. Long term rates and variable rates may go in different directions.
Geez, I sound like a TV economic expert.
Should we all panic and sell out, or at the very least totally ignore real estate as an investment option?
I sincerely believe that Toronto is one of the safest real estate markets in the world. Values may cycle slightly but, over the long term, well-chosen downtown Toronto property is a good place to invest. More important, it’s a nice place to live.
Having said that, there are some silly parts. For example, condos priced more than $600/square foot really need to be in premium, "name-brand" buildings, by which I mean a REAL brand name (like Ritz Carlton, Four Seasons or Trump Tower). Look for suites from $300/square foot — they still exist — and stay under $250,000.
Harry Stinson was one of the first Toronto developers to recognize the potential for urban condominiums, to develop residential lofts, and to convert old office and warehouse buildings into residential spaces. His current project is the Stinson School Lofts, an 1894 heritage building in Hamilton, Ont., that he is converting into stylish and affordable lofts.