Bubble trouble: the Toronto condo boom may (or may not) soon go bust
Is the Toronto condo market in a bubble? Who knows! Yesterday, the Bank of Canada warned that the condo boom is about to get seriously less boomy (apparently, “the supply of completed but unoccupied condominiums is elevated, which suggests a heightened risk of a correction in this market”). Sure, that may sound gloomy, but some indicators of the market’s health aren’t even tracked. For instance, although rumour has it that foreign investors are buying all the condos they can, according to the Globe and Mail, Canada doesn’t track foreign investment in its real estate market. Meanwhile, National Bank analyst Stefane Marion believes a recession is the real threat to the housing market, and Urbanation predicts 2011 will actually be a record year for Toronto condo sales. If you’re not sure what to think, don’t worry: we’re pretty sure nobody really knows (not even The Economist). Read the entire story [Globe and Mail] »
(Images: Toronto skyline, Seekdes (Mike in TO); bubble, Rhett Maxwell)
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The adjustable rate mortgage that I had before had me nearly to the brink of bankruptcy because of the never-ending payment increases. Now I have 3.18% fixed rate. I would absolutely recommend 123 Refinance I worked with to anyone I know planning to refinance mortgage.
If people still haven’t learned how to spot a real estate bubble then all hope is lost. The reality is the proper acronym for real estate in Canada, China & Australia is CaCA. People would be well advised not to wade into those markets.
http://www.wallstreetrant.com/2011/12/real-estate-markets-in-canada-china-and.html
Toronto and Vancouver market will be up again next year as people are still taking advantages of the low mortgage rates and would like to lock with that rate for housing invsetments
Investors/flippers are trying to get out of their condo deals in Toronto and surrounding GTA as the condo bubble is starting to fall apart. We all read in the newspapers about Trump towers and the many condo flippers trying to get out of the crashing condo market. Thousands of condos in Toronto sit empty with no renters or buyers. The worst part is thousands of condo continue to hit the market each and every month. A bankers/mortgage friend of mine said condos in the GTA could fall well over 20% in 2012.