Toronto Condo Crash Coming in 2009?

toronto condo

Here's a staggering stat for you: as of September there were almost 34,000 condo units under construction in the GTA. In case you were wondering, that's 3 times more than the annual average. Doesn't this seem a little strange given the downward pressure on the housing market and the ongoing credit concern?

Could the condo market in Toronto be headed for a major implosion? With so many units under construction, over-supply figures to be a problem and it doesn't just plague Toronto, as Vancouver is also experiencing a similar bloated inventory issue. But what is most concerning is the type of condo buyer that represents a large chunk of the market. Between 30-50 percent of condo buyers are investors, not residents like you or me. Condo investors are impatient and if they don't get quick returns, they sell. So with the current economic climate deteriorating by the minute, it is reasonable to assume that many of these quick-hit investors could be running for the exits which could result in the largest over-supply problem this city has ever seen, and could subsequently see condo prices plummet.

Buckle-up your mortgage and sit tight, because 2009 is shaping up to be a rocky road for Toronto real estate.

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[ READER COMMENTS ]

  1. 1

    kelvin said:

    The renting is pushing it to crash. I wen to XX bloor and saw on the posting borad a lot of "for renting slip" asking around 1300 for one bedroom. The front desk guy told me the price for 1+1 was about 300K but the agent showing me a unit was asking only 260k and could be reduced if really interested. Buy my speculation is for this rentling return, 240k is already overpriced. By this renting market, the condo will definately crash in price. Not far from this building is 1 bloor. How the bubble was blown to 800 per sqft?

    Posted at 04:03 PM, on January 28 2009

  1. 2

    kelvin said:

    crash is natural thing if not crashing is is not normal. ask 1055 bay st condo guy the resale price droped 25% and renting is deduced substantially.

    Posted at 04:14 PM, on January 28 2009

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