A new report by the CMHC indicates that about 23 per cent of Toronto’s condo stock is currently being rented out by investor-owners. The CMHC, which i a federal housing agency, says in its annual Canadian Housing Observer review, released Wednesday, which places a special focus on the national condo market this year, revealing some interesting details. The review currently looks at condos rented via the MLS system and doesn’t include investor-owned units which are rented on online marketplace websites, like craigslist, and Kajiji.
Toronto Housing Market Balanced
BMO Housing Market Scorecard Status: "Balanced" Market
In Canada's largest housing market, sales are up 20 per cent year over year in the three months to October, and stand 9 per cent above past decade norms. While sales slowed somewhat in November, benchmark prices have picked up to an above 4 per cent pace and are over six-times median family income. After plunging last year, new condo sales have firmed, but remain well below the past decade norm.
Condos Offer the Affordable Alternative
Condos are an affordable alternative to the detached market for more than 80,000 international immigrants moving to the region each year and the growing number of young people leaving their parents' basement.
For the most part, markets are balanced, but sellers rule and bidding wars prevail in some areas where listings are scarce. "The looming supply of condos, high valuations of detached homes, elevated levels of household debt and moderately higher interest rates should slow overall price increases in 2014," noted Mr. Guatieri. "We expect Toronto house prices to stabilize in 2014, and to remain at risk of declining moderately when interest rates normalize