A recent report from CIBC and Urbanation reveals, majority of new condo investors in the Greater Toronto Area are losing money every month.

🔹 Key Findings:

82% of investors with mortgages on newly completed condos are cash-flow negative in the first half of 2024.
This is up from 77% last year and significantly higher than 40% in 2020.
Investors who closed on condos in 2023 are losing an average of $597 per month, compared to $223 for those who closed in 2022.
About 30% of those who closed last year are losing over $1,000 per month.

📊 Market Impact:

Rising costs and higher interest rates are driving this trend.
New condo sales have hit a 27-year low.
Despite the pressure on investors, condo prices have only slightly decreased, with unsold unit prices down 2.6% in the past year.

🏢 Expert Insight:

Benjamin Tal of CIBC and Shaun Hildebrand of Urbanation say, the GTA housing market is facing its toughest challenge since the 1991 recession.

Stay informed and prepared as the market continues to evolve.