Toronto’s slowing condo market will stabilize next year, but the risk that prices will fall is greater in the longer term, Canada Mortgage and Housing Corporation says.
Shaun Hildebrand, a senior market analyst for the Greater Toronto Area at CMHC, presented his latest thoughts on the market at a conference Wednesday morning.
The large quantity of cranes dotting the city’s skyline are part of the reason why many observers have suggested that Toronto’s condo market could be in a bubble, one that could precede a significant drop in prices.
But Mr. Hildebrand said he’s far less worried than many. “I’m not overly concerned, although there are risks,” he said in an interview. Among those are the rising proportion of condos that are owned by investors, and the large increase in new condominiums that will be completed in the years ahead.
One risk that Mr. Hildebrand doesn’t subscribe to is the much-discussed notion that foreign investors are propping up the market.
“I don’t see that there will be any sort of mass exodus of foreign money,” he said. While there are no statistics on the proportion of new condos that are being bought by foreigners, Mr. Hildebrand said that surveys by the Municipal Property Assessment Corporation suggest that about four per cent of the condos in Toronto are owned by people who don’t have Canadian citizenship.
Toronto Condo Market to Stabilize
ICE Condo
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