Last month Ben spoke at the Fortress 2013 Kick Off at Trump Hotel in downtown Toronto. The aim of his presentation was to dispel some of the misinformation recently published by the media about the Toronto market.
The video is full of great data, but we’ve pulled out a few highlights for those with short attention spans below…
- Urbanation forecasts 17,000 new condo sales in 2013.
- A decrease in sales doesn’t always mean a decrease in demand.
- At the end of 2012 there were 207 projects and a total of 56,866 units under construction — 88 per cent of the suites are sold (a very healthy level).
- 79 per cent of the 89,241 active units in the Toronto CMA were sold at the end of Q4-2012.
- Unsold pre-construction units have increased, but not doubled as the Bank of Canada Report indicated.
- Price growth in the condo market has slowed due to a softening market and more lower-priced suburban projects.
- Despite record starts and units under construction, no glut of units coming. There is a construction capacity in Toronto that keeps completions down.
- Prices won’t crash because there is no recession in the Canadian economy, foreclosures are less than one per cent of the market, sellers refuse to accept low ball offers and the rental market is strong so investors are not panic selling.