Cash For Keys & Condos, Vacant Possession on the Rise
Cash for Keys and Vacant Units have been a hot topic lately, take a look at some of these stats.
Gary McGowanREALTOR® and national real estate trainer
Cash for Keys and Vacant Units have been a hot topic lately, take a look at some of these stats.
The Toronto condo market has seen a seismic shift from September 2022 to September 2023. The most alarming statistic is an 85% year-over-year (YoY) increase in active listings. Let's break down these numbers to understand what they mean for buyers, sellers, and investors.
Key Data Points
- September 2022: 5,703 Active Listings, 1,942 Vacant Listings, 34% Vacant
- September 2023: 10,672 Active Listings, 4,096 Vacant Listings
The Surge in Active Listings
The 85% YoY increase in active listings is the most concerning statistic. This could be indicative of a saturated market, where supply significantly outpaces demand. Condo sales in August 2023 were up 8% over last year, but new condo listings were up 22%
Vacancy Rates
The number of vacant listings has also increased, but not as dramatically as active listings. The vacancy rate has remained relatively stable, moving from 34% in 2022 to approximately 38% in 2023.
Market Implications
- For Buyers: More options but potential for price drops.
- For Sellers: Increased competition may require more aggressive marketing.
- For Investors: High vacancy rates could offer investment opportunities but also signal market saturation.
To Sum Things Up,
The 85% YoY increase in active listings is a red flag that warrants close attention from all market participants. Whether this is a temporary blip or a sign of a cooling market remains to be seen, but it's clear that the Toronto condo market is in a state of flux.
