Bad Press for Toronto Condo Market

The popular news choice over the last few years has been the talk about the overheated condo market in Toronto. It seems like everyone wants to predict when the bubble will burst and be the one that says "I told you so!"

Well being in this business first hand, I have come to understand why this bad press exists. The market in toronto has nearly doubled in the last 5 years and people are trying to cool the housing market down to avoid a bubble. If they continue to report bad press about the situation, then it puts fear in buyers and inturn slow the market down. Well this past summer, we saw the biggest slow down in the Toronto Market yet as many were predicting a crash. However prices just hovered and even saw decreases of 2-4% but in no way was there a crash. The biggest impact has been on the higher priced properties as people have decided to stay put in their homes and not make any upgrades at the moment in case of a shift.

As for the condo market, it still continues to do well and I am seeing increased activity for first time buyers as we are approaching the beginning of fall. These starter condos continue to be in demand for end users and the first time investor wanting to get their feet wet in real estate investing. All the bad press has given them great opportunities to enter the market and since rental rates continue to remain strong, there is still lots of demand.

I am not saying that we will conitnue to see the double digit gains that we have seen in the past, I just think that if you have a long term investment objective, the Toronto Condo market will continue to do well regardless of the all the talk out there.