Brokers shouldn’t necessarily expect their condo-seeking clients to leaving them sitting on pre-approvals too long, with one industry leader suggesting buyers and prices will stay put.
“I don’t see a bubble, but I think we will correct ourselves,” Mark Cohen, founding partner of The Condo Store, said. “I don’t think the prices (in Toronto) can go down.
“Supply is lacking. There is probably less than six months of inventory.”
That at least is the hope of most mortgage professionals, especially those focused on first-time buyers, as they scrutinize the market for any real signs of a correction on the way.
Analysts suggest Toronto and Vancouver are most vulnerable to that kind of price depreciation, likely on the scale of 10 per cent to 15 per cent over the next 18 months.
New mortgage rule changes announced today have only heightened concerns that the condo market, considered most vulnerable, will cool sooner rather than later.
Still, in supply-challenged T.O., the consequences of more rigid qualifying terms for borrowers isn’t likely to prevent sales from being consummated, argue some analysts.
That may not necessarily be the case in Calgary, Edmonton and other markets where housing markets have struggled in fits and starts to recapture pre-recession glories. That hasn’t yet happened.