CMHC, Canada Mortgage and Housing Corporation recently forecasts that the Toronto's real estate market will be soft landing.
A 'soft landing' means a few things for Toronto's real estate market:
The following two charts are from CMHC's report and show their forecasts for resale home sales and average prices for the Toronto area.
The interesting story coming out of the CMHC with positive outlook for Toronto's condo market:
As condominium projects complete, some of these investors will choose to sell their apartments in order to take advantage of increases in market value which occurred during the construction period. These increased sales are not forecast to result in declining values for condominium apartments. Currently, the resale market is very tight. Sales accounted for half of active listings at the end of 2007. Moreover, the number of completed and unoccupied units is very low, ranging between 1,000 and 2,000 units. These tighter market conditions resulted in average condominium apartment prices growing at an annual rate of over 10 per cent in 2007. As more supply comes into the marketplace over the next year, however, the rate of price growth will moderate to approximately five percent in 2008 and 2.5 to three per cent in 2009.
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