Gallery First & Tenth | 60m | 19s | Truman

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Took a few clicks on the way by tonight, looks like things are well and underway with the first storey almost finished!
 
i was chatting with a few agents in Calgary, some top producing brokerages that specialize in condos. They are seeing truman units down 15% in value since purchase, lots of people are unable to close right now due to the drastic drop in appraisal price on closing. Also said since the market rents have dropped truman has been terminating the rental agreements on projects last minute. I was really worried about this and multiple agents have confirmed this.

Anyone care to chime in? Im already putting 20% down from what i paid. With that much of a decline in value we may be forking over a ton of more cash to close.

They did give me contact info for a guy at TD that offers blanket appraisals specifically for truman builds, which would help. Hopefully the market is ok by the time we need to close.
 
With these buildings still a long ways until completion it’s difficult to say what the market will be like by then. Calgary has seen a residential high rise boom lately but I wouldn’t be surprised to see it slow down to a high rise and there over the next couple of years. The market could easily be low in inventory by then.
 
Dubs147 said:
i was chatting with a few agents in Calgary, some top producing brokerages that specialize in condos. They are seeing truman units down 15% in value since purchase, lots of people are unable to close right now due to the drastic drop in appraisal price on closing. Also said since the market rents have dropped truman has been terminating the rental agreements on projects last minute. I was really worried about this and multiple agents have confirmed this.

Anyone care to chime in? Im already putting 20% down from what i paid. With that much of a decline in value we may be forking over a ton of more cash to close.

They did give me contact info for a guy at TD that offers blanket appraisals specifically for truman builds, which would help. Hopefully the market is ok by the time we need to close.
Click to expand...
I know it's not my money involved in this, but I wouldn't panic. This building still has over a year to go before it's fully completed. Right now with an outflux of temporary foreign workers, growth will be slow for a bit, and rents will soften. This is also the case for other cities in Canada. In a year or two things will bounce back as they always do.
 
The banks are also being extremely conservative on condo valuations right now because of what is going on in Toronto and Vancouver. We had to get our condo downtown re-appraised recently and the desktop appraised value initially came in at $100,000 less than what similar condos in the building are selling for and $80,000 less than the City of Calgary assessed value. We appealed and they had an appraiser actually come do a walk-through and adjusted it back to match the City of Calgary assessed value. I agree with others that by the time your closing date rolls around, the banks will likely be less fearful of a condo crash and will be offering more reasonable assessments for condos.
 
It's partially my fault. I'm the inverse condo value whisperer. Every time I try to sell my "investment" condo (bought 14 years ago at the condo top), the market just happens to be at the bottom of its cycle. So I rent it out for another 2-3 years, watch the values of comparable go up, and just as the lease is about to end the market goes down. I just had my lease end this month...so look for the market to start picking up as soon as I rent it out.
 
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