Number of unsold Toronto condos now at 21 year high
The condo boom is as fierce as ever in Toronto. According to a report from the Bank of Montreal, a record 10,368 units were completed in the city last month, shattering previous totals. Analysts chalk the burst up to companies playing catch-up after construction delays in previous years, but the flood of finished units is expected to cause a ripple effect in the market.
Despite demand being high for new condos, there are now over 1,600 units on the market, a 21 year high. The saturation of available units should, BMO predicts, curtail the rise of condo prices in the city, at least for the time being. How long this will last,however, is harder to predict. Construction of new buildings isn't slowing down and other cities across the country are dealing with surpluses.
It seems like Toronto condo watchers are always waiting for the other shoe to drop, which has yet to happen even though words like "overbuilding" and "saturation" are thrown around with greater frequency. What do you think? Will construction of condos continue to outpace demand in this city?
Photo by Neil Ta in the blogTO Flickr pool
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