21 July 2011 ~ 0 Comments

Will The Condo Market Crash?


There has been lot’s of press in the past week with dueling articles in The Globe and Mail and The Toronto Star about the near-immediate crash in the housing market. TD bank even chimed in that sometime “in the not so distant future” prices in Toronto will drop by 10%.

I wonder if readers even pay attention to these articles anymore? Me? I’m so tired of the same news sources saying the same thing  every few months for the past 4 years and it not happening that I’m surprised they still have jobs!

For the record I don’t think we will see a major crash anytime soon unless 1) The U.S. doesn’t fix it’s credit problems, 2) Greece or another European nation goes bust and 3) Interest rates rise at a very rapid rate in the next 18 months. There is too much riding on higher interest rate hikes (or they would have started them by now right?) that this scenario will most likely be the least likely of the three. And there is no way the U.S. is going down…sorry to say. Greece…well that’s anyone’s guess!

I know the 10 or so current buyers I am assisting at the moment doesn’t think so either. Nor do the 5,000 or so purchasers who bought throughout the GTA in June or they would have waited “another month or two” as the so called  journalists-turned-real estate experts say they should.

Toronto housing (including condos) has a very high demand factor from a variety of areas. I’m sure you would agree if you have been out looking at property lately…no signs of a crash to be seen.

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