Yes, all you've been hearing about over the past few years is the condo real estate bubble in Toronto. There has been grumbling that it's time for the Real Estate Market to burst, and we have been waiting faithfully for the market here to implode. I just can't believe how long it's taking. So now we have some numbers from the Toronto Real Estate Research Group called Urbanation which is stating that even though Toronto condo sales fell below their historical average in 2012, they remained strong throughout the year. The research group stated that 3,800 units sold in the last quarter of 2012. For the year Toronto recorded almost 18,000 new condo unit sales. The five year average is 20,000 new condos per year, and the ten year average is 17,000 new condo units per year.
Toronto Condo Bubble..Time for it to Burst Already?
On another note, Toronto's economic performance has not been sufficient to maintain it's present population growth. The latest statscan report shows Toronto continues to grow by over 100,000 people per year, although job growth in Toronto has been stagnant in comparison to the Western Canadian provinces where there is tremendous job growth. If Toronto's job growth does not keep pace with Western Canadian provinces, it is possible that Toronto's population could begin a steady decline, which would then cause the Condo Market Bubble to finally burst. However, this has not happened yet, although we are awaiting for prices to decline, in relation to sales which as stated have fallen off their peak and historical levels.
Toronto a Construction Behemoth
While the Western Canadian Provinces continue to lead economically, there is one area in which Toronto currently has the lead, it is actually the construction capital of the western world. It's building over 150 skyscrapers and has more towers under construction than the rest of Canada and the United States combined. This is an awesome feat when you consider that there are 3 cities in the United States bigger than Toronto, yet they are not building skyscrapers at the same pace as Toronto. Those two cities are Chicago and New York, the homes of modern skyscrapers, and skyscraper construction. Toronto is now the engineering, design and building leader when it comes to skyscraper construction in North America. Imagine that?
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