“There is an increasing amount of supply on the market, but at the same time prices are still rising and sales are still rising,” said Andrew la Fleur, a real estate agent at Re/Max Condos Plus in Toronto.
“Prices will continue to rise as long as people continue to buy more condos than they did before.”
The report, published by TD Economics, references a “softening in condo market conditions” that reflects a decline in new home construction in Toronto since early 2013.
“The current level of starts is well off the peak reached in 2012, and on a six-month moving average the pace of new home construction in Toronto is hovering near 2008/2009 recessionary levels,” said the report.
But Shaun Hildrebrand, senior vice president at Urbanation, said this slowdown is backwards looking.
Toronto’s condo market will experience a “cyclical cooling off,” according to a new report, but experts say condo prices and sales will continue to rise, and there is still plenty of demand for these types of properties.