A recent study into the health of condo markets across Canada* puts to rest fears of a condo “bubble”, and instead confirms the expectation of a soft landing in most cities.
Overall, the findings support a balanced outlook on Canada’s condo market this year, with the exception of Calgary and Edmonton which are affected directly by lowering oil pries, which leads to declines in GDP and employment.
Vancouver’s housing recovery is forecast to continue; however housing starts are expected to remain low.
Population growth and employment remain key drivers of demand for condos in urban centers such as Toronto where, despite going though of as one of Canada’s most at-risk markets, has not entered bubble territory according to the study, which points to growth from population hikes, immigration rates and empty nesters who are expected to flock to the market.
The study notes that because resale volumes in Toronto are solid and prices continue to rise, a “soft landing” is the call for this market segment, although brief periods of inflation-adjusted prices drops are possible.
The study highlights the variable dynamics of real estate activity between different cities. Please contact me to confirm the latest prices and results in your specific area of interest.