Journalist Garry Marr’s February 13, 2014 Financial Post article, “Condo correction not in the cards for Toronto, Vancouver, says new report,” is very interesting. In it, he quotes CIBC’s Deputy Chief Economist, Benjamin Tal, who predicts ongoing low interest rates into 2015 and a continuing strong rental market in Toronto. This is great news for condominium developers and investors.
Tal believes that vacancy rates will rise slightly, but with the number of new rental units each year only 1,000 over what is needed, the effect on the market should be minor. He also cautions “Canadian real estate bears” that they will have to wait for the housing market crash they have been predicting, and that any coming correction will be “much gentler” than the naysayers let on.
Those of us who work in the industry witness the continuing popularity of condominiums in Toronto, so this report validates what we have been saying for years. Condos are a residential force to be reckoned with, and will be well into the foreseeable future.
You can read Garry Marr’s article here: http://business.financialpost.com/2014/02/13/condo-correction-not-in-the-cards-for-toronto-vancouver-says-new-report/