Reports are suggesting that the condo market will make it out okay this year, even in Toronto, despite all the negative reporting around it. The Bank of Canada says it puts risks onto the Canadian economy when many condos are being built and nobody is buying. If we look back to last year, Condo sales were down overall and were predicted to take the same turn this year as well. However, a recent study done by a Canadian insurer, Genworth Canada, stipulates that this is not the case as it will be propped back up by population growth and job production increases.
Even though rates have been steadily on the rise, the study also suggested that we will not see an abundance of foreclosures or sharp supply increase. Instead, homeowners are taking advantage of the low interest rates now, to help them pay down their homes as quickly as possible. The exact opposite of a housing crisis. Of course, there is no denying that this condo market and the market in general has cooled, but it will stay steady based on demand with demographics. There are also rules stipulated by banks funding certain new build projects to have a required number of pre-sales before proceeding. Statistics for the condo markets vary, but as long as there is a demand for it, there should be no crisis on hand. This market particularly attracts young professionals, new comers, and the newly retired couples who have no more dependents to worry about. Lower prices in the condo market, without doubt, helps individuals purchase, which can ensue a buyers market.
Based on this new information received, we can see there is a slight slow in the condo market but it has not come to a complete stop based on the demand for condos in the city. Economists predict that the market will begin to climb in price again by 2014 by 1.4% to 3.6%.