BMO says Toronto condo boom has “run its course”
In a client note the Bank of Montreal suggests that the huge growth in condo development and sales in Toronto may be coming to an end. The comments come after the CMHC published figures showing a slowing of housing starts in August to a four and a half year low. BMO economist highlights figures from two years ago when the annual number of starts was 40,000; in 2014 it’s 16,500. Building permit numbers also fell massively in August, down 43.5 per cent. BMO economist Robert Kavic notes however that there are around 56,000 units currently under construction in Toronto so there is new supply to come. Kavic suggests that oversupply won’t be an issue in the city as things return to more balanced levels.