The Future of the Toronto Condo Market place

Post by Joy Paterson

It’s no secret that 2007 ( and the beginning of 2008) was a red hot year for the Toronto condo market place with week long line ups to buy preconstruction condo units and record breaking sales numbers. With the current state of the economy south of the border, it’s inevitable that the Canadian economy will be affected by the US’s slowdown. Many people are wondering what this means for the Toronto Condo market place and are we in a condo bubble ready to pop?

Lending Institutions: The excellent news is that Canadian banks adhere to tighter guidelines and regulations for lending than our U.S. counterparts ensuring that borrowers can really afford their monetary obligations. In 2006 and in the first half of 2007, only 1 in 400 mortgages went into arears in Toronto. Interest rates also stay very low and are expected to decrease in the near future, keeping Toronto actual estate reasonably priced.

Affordability: Much more and a lot more first time buyers and young families are turning to condos as the cost of single detached homes continue to rise. For the month of February 2008, the typical selling price of a detached resale home in the central regions of downtown Toronto and North York was over ,000, generating it practically impossible for first time and young buyers to grow to be house owners in the core locations. Condos stay the most inexpensive ownership choice for central urban living.

Diversified Labour Marketplace: Toronto has a properly diversified employment market place with the quantity of jobs in finance, insurance, expert, scientific and technical services out numbering those in the manufacturing sector. Toronto has also skilled strong employment levels with unemployment levels at about 6.8% in 2007. This diversified labour market place is less susceptible to widespread job loss than surrounding suburban cities.

Population Adjustments: Toronto is the largest city in Canada with a population of over 5 million residents in 2006 and its population is constantly growing and altering. Among 2007 and 2010, Toronto’s population is expected to increase by an average of 1.9% per year therefore creating a demand for new housing. An aging and altering population is producing a want for distinct types of housing. Existing households are downsizing as the kids of the baby boomers are leaving the residence.

Condos remain the most affordable ownership selection for urban living. Existing demographic adjustments along with a growing and changing population will continue to generate a healthy demand for Toronto Condos. Overall, the outlook for the future of Toronto’s Condo market remains positive and condo sales really should continue to outpace the overall housing marketplace.

Information sourced from:Shim, Jeanhy, Genworth Financial Presentation ( Toronto, 2008).Toronto Genuine Estate Board, Market Watch February 2008 (Toronto, 2008).