This year began as a buyer's market for the Toronto Condo and since it's considered to be a vulnerable market, it's been watched closely. A current report stated that the Toronto Condo market is on solid grounds with over 36,000 condominiums currently under construction.
Condo Market on the Rise
The odds of oversupply of condominiums in the market are very less, as the amount of condos being built in the past few months was less than usual. The sales of new condominiums shot up sharply in March which brought back expect the Toronto Condo market. 6 cities were analyzed on the combination of the three metrics: unsold inventory, apartment rental vacancy and cost of renting over ownership. Toronto, along with Vancouver arrived to be at least danger of any of these possibilities.
Bridging the Gap
It was reported that 36,255 units were under construction in Toronto. But they are the buildings that came into market in 2006 and 2007. Once each one of these condos are sold, funds is going to be readily available for building new ones. This gap between the completion of condos and their sale is apt to be bridged soon as both buying and selling condos cannot be postponed for a long time.
The issue so far has been that buyers have been expecting a very low price whilst the sellers are looking forward to last year's prices, that have been higher than the present rates to return. Although it has started off as a buyers'market, it's predicted that the sales will pick up by late summer and some competition can be expected between buyers for some properties.
Recovery in Progress
The Toronto Condo market is expected to pick up and recover a great deal in the next quarter of 2009 as the economy appears to be rebounding. Initially of the entire year, the Toronto Condo market was so bad that they didn't even bother advertising. With the improving economy and people getting back to buying and selling condos again, the Toronto Condo market is back on course and steadily gaining momentum.
The Toronto Condo market was so bad that they didn't even bother advertising. With the improving economy and people getting back to buying and selling condos again, the Toronto Condo market is back on track.