Home of the Week, 128 Pears Ave., unit 501, Toronto.Michael Peart Photography
This week, Canadian real estate markets — like most everything — are growing increasingly nervous about Trump’s tariff threats. From condo construction to new builds, looming changes from the U.S. has left everybody waiting for the other shoe to drop. We also take a look at Calgary’s LRT housing woes, Toronto’s falling preconstruction condo prices, and one home worth a look.
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Tariff Troubles
Condo costs could rise as rental prices fall, Toronto buyers backing out amid uncertainty
U.S. President Donald Trump continues to threaten tariffs on Canada — which are currently set to come into effect by March 4 — and has sent almost every major industry into turmoil. But how is it hitting the Canadian real estate markets? Let’s start by focusing on what’s happening right now. As Carolyn Ireland writes, Toronto’s housing market has grown increasingly anxious, with potential buyers pulling back while listings surge. John Pasalis, president of Realosophy Realty, told The Globe that the tariff threat has smothered the positive signs that were beginning to emerge. “The sellers are there, but the buyers are on the sidelines. It’s leading to a very sluggish market, and now we have this massive cloud of uncertainty.”
Meanwhile, Canada’s threat of retaliatory tariffs against U.S. goods could hit the condo industry especially hard. As Shane Dingman writes, condominium owners are unusually dependent on U.S. materials — like carpet and wallpaper — for renovation jobs. It might not seem like a huge deal, but some companies buy millions worth of the stuff from the U.S. every year to refurbish thousands of condominium buildings across the country, and there’s not really a Canadian market to replace it if prices go through the roof. Last week, we wrote about how a trade war could wreak havoc on the homebuilding industry, and it seems like Canadian businesses are still stuck waiting.
But the tariff threat might have a silver lining if you’re a Canadian renter, as rents could actually drop as landlords seek to lock in tenants ahead of any economic uncertainty. Yes, it might be because the trade war could throw the economy into a recession, but you take what you can get.
Joe Baradziej purchased a condo during the pandemic for $2.2 million, but it was recently appraised at $1.6 million, leaving him on the hook to bridge the $595,000 gap.Laura Proctor/The Globe and Mail
Toronto’s condo slump
Condo buyers left in the lurch as their preconstruction condos worth less than what they originally paid for them
After a crazy period in 2021 that saw preconstruction condo sales hit record prices, the market has gone downhill, and taken a few buyers down with them. As Rachelle Younglai writes, people who bought preconstruction condos years ago are seeing their appraisals come in for less that their original price, leaving them with the tough decision of whether or not to cut their losses and run. Buyer Joe Baradziej signed on a $2.195-million preconstruction condo in midtown Toronto, only for appraisers to value it at $1.6-million last fall — 27 below purchase price. Since he signed a legally-binding contract with the developer, he decided to forgo his deposit and walk away from the unit. Some appraisers say that values have been typically coming in 10 per cent to 30 per cent below a condo’s original selling price leaving buyers to come up with the difference.
The Seton community area in southeast Calgary was designed to have higher density around key amenities, including a hospital and LRT.Arden Shibley/Arden Shibley
Delays on the LRT
What happens to a development centered around a new transit system when the system is delayed?
Two decades ago, Calgary’s city planners envisioned the city’s southeast as a collection of communities filled with housing, services and amenities, all focused around a robust transit system. But there’s a problem — the Green Line LRT isn’t due for a least another decade. Ximena Gonzalez reports how the neighbourhoods designed with transit in mind have adapted to the delays.
Home of the Week
Double-sized Toronto condo fits a downsizing couple’s tastes
Home of the Week, 128 Pears Ave., unit 501, TorontoMichael Peart Photography
128 Pears Ave., unit 501, Toronto — Full gallery here
This spacious unit is located in the increasingly popular Avenue and Davenport neighbourhood — “Ave and Dav,” for short. Originally two separate condos, a previous owner had purchased both and combined them into one three-bedroom super-condo, with a split floor plan that separates the two guest bedrooms from the primary suite through the centered living space. Carolyn Ireland spoke to the current sellers, who said the condo was the perfect fit as they looked to downsize from a larger house back in 2020. They filled the space with vibrant colours and their collection of contemporary Canadian art. If you’re looking for a quiet building with tons of good restaurants, give the listing a look.
Guess the price
b. The asking price is $2,995,000.