Brad J. Lamb, the developer and real estate sales extraordinaire, appeared on the Charles Adler show on Monday to give the well known talk radio host his thoughts on the state of the real estate market, both in Toronto and across Canada.
The interview — available to stream here — was only five minutes long, but as always, Mr. Lamb was full of great quotes and insight. We listened closely and jotted down some of the best points from the interview. Check them out below…
Brad Lamb on the so-called “condo bubble” in Toronto:
- Lamb has been hearing about “bubble trouble” since 1998 in Toronto. It’s a constant comment from people who don’t understand the industry
- Trump Tower is a great addition to Toronto. The issue at Trump has come down to people buying hotel suites. Every single development across North America and the world that has had a program selling hotel suites to investors has been ill-fated and failed.
- The trouble with Trump is when you sell a hotel suite to an individual you can’t talk about cash flow and rent. You can’t put it on paper because it contravenes the Securities Act. There may have been talk of potential returns, but nothing was in ink.
- When times are fantastic some people jump in with both feet. If everyone had made a lot of money no one would be complaining right now. You can’t always make money all the time. The people who purchased these units in Toronto should suck it up.
- Real estate prices in Canada will come down when there’s a recession. In 2008, we had a substantial drop in prices in Toronto and across the country. After that, from 2010 to 2011 and a half, we saw a rise of about 10 per cent per year.
- Prices in Toronto are going sideways. They’re not really going down. On a case by case basis you’ll see some properties rising in value and some dropping. You’ll see average price in Toronto hold pretty close to what we’re at today. We don’t expect huge increases in pricing going forward over the next couple of years because the economy is slow again.
- A condo is still a safe investment. We’re underserviced for condos in the city, it’s unbelievable. There’s no concerns about prices falling in Calgary or Edmonton. Vancouver is a very small city where the condominiums exist. That part of the city is very small and congested. There’s not a lot of land and a lot of people want to live there.