Will there be a market correction in Toronto?
The Gardiner Expressway is surrounded by condo buildings, and there’s no end to the construction as cranes fill the sky.
Many Torontonians are curious if there will be a correction in the condo marketplace. Here are the facts:
- By the time a shovel hits the ground, 70% of the new building is already purchased. This means that the developer already has committed buyers and deposits from each.
- With more than 100K immigrating to the GTA annually, builders are unable to keep up with the demand.
As long as builders cannot keep up with the demand, the law of supply vs demand will prevail. Meaning that as long as the demand is high, and there is low supply, prices will continue to rise.
- Toronto has become one of North America’s leading Tech Hubs. With many young professionals moving into that industry, there’s a strong preference for downtown living.
- This supports the demand for new condo construction in Toronto’s core.
Will there be a correction in the condo market place? Real estate prices are driven by supply and demand; as long as demand continues to grow as it has historically – we can expect prices will to continue to appreciate.