Toronto builders adjusted strongly and brought inventories down significantly to match demand (George from Realnet feels that we are currently "under supplied" hence bidding wars).
Why did this happen? According to Ben Myers from Urbanation, the Toronto condo market is controlled by a number of well-healed developers (75% of the units in Toronto are built by "large and wealthy" developers).
As a result, the condos built in Toronto are built by financially stronger players than in other cities = no desperation to sell quickly = better able to manage supply = insurance against bubbles.
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3 comments:
It is great that Builders are in a stronger position in Toronto than in other cities. On the flip side of the argument this could mean that condo developers could keep prices artificially high and eventually the market will catch up with you.
Thats true...they have to balance this with the ability to sell 80% of their units with 20% down before they get construction financing.
Like any business...supply and demand meet at some point.
Is this the right time to buy a condo in Toronto?
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