Toronto condos have experienced a resurgence, as prices and sale numbers climbed in June. Now, the average condo will set Torontonians back more than $367,000, according to the Toronto Real Estate Board.
The condo market has traditionally been the go-to for the first time buyer segment, as detached home prices are higher than most starter budgets allow. However, while developers are creating huge amounts of supply, buyers have been tapering off. Does this mean the condo market is in for a crash?
Various reports point to a slowdown for Canada’s future housing market, as attempts to calm Canadian borrowing levels lead to higher mortgage rates, and developers take a more cautious approach.
Could the market be due for a 25 per cent crash? Today’s report by Capital Economics certainly points to that direction. Released just a day after RBC’s statement that Toronto – one of Canada’s biggest markets – is not in a bubble, today’s statement has economists and home buyers alike wondering: what’s in store for home prices?