A buyers' MARKET

There are pre-construction condo deals in the GTA to be had for those willing to do their research. Expert advice on how to navigate 'distress' sales

- MARISA COULTON

Toronto's condominium market is in trouble.

Prices are down, sales are at multidecade lows and more owners are selling under duress as an increasing number of pre-construction buyers find themselves financially under water.

Bad news for sellers - but potentially good news for buyers looking to get in the housing market.

During the pandemic, many Ontarians bought unbuilt pre-construction condos in the hopes of selling them for a profit once they were completed a few years down the line.

At the time, it seemed like a good idea, because interest rates were low. (When you purchase this type of unit, you put down a deposit, and it's held by the developer until it has been fully built and registered under your name.) But with condos now ready for occupancy, the market is unsteady and buyers are waiting on the sidelines.

"People are really hemmed in by high interest rates and high prices," said Clay Jarvis, lead writer and spokesperson at NerdWallet, a personal finance website.

The original purchasers are now stuck with fully built pre-construction units that they can't afford. To get rid of the condos, they need to sell them on "assignment," which allows them to transfer the rights and obligations of the original purchase agreement to another buyer.

Some are dropping the listing price and selling at a loss - a "distressed" sale in the hopes of piquing buyer interest.

It's a buyer's market, says Harsh Dara, a realtor with property.ca, and there are pre-construction condo deals out there for those who are willing to do their research.

We spoke to experts to find out how to get a great deal on a preconstruction condo, without getting burned.