Toronto Condo Market – Too Hot To Handle?

Condo Building ConstructionIs there truth to the notion that  you can have too much of a good thing? According to a new report released by Bank of America Merrill Lynch Global Research, this is exactly the case with the hot condo market in Toronto, who speculate that this rising star will crash and burn.The authors of the report feel that there is soon going to be a flood of inventory into the market with the myriad of new condo construction projects underway in Toronto.

They believe that the sheer volume of construction will inevitably throw the mechanics of supply and demand out of whack- and put downward pressure on prices. Click here to view the full article.


Here’s yet another red flag regarding the torrid pace of condo construction in central Toronto and the risk that this will lead to falling prices. For the time being, the condo market is strong, and the tight rental market suggests that it will continue to be “OK” for a while yet. But the sheer volume of new construction, which will eventually translate to a flood of condo listings as investors (the primary buyers of these new condos) put their units on the market, suggests that supply will ultimately surpass demand. There have been lots of warnings like this over the past ten years or so, but maybe this time they are crying wolf for real.