Deliver Your News to the World

Is There Really a Condo Bubble in Toronto?

According to the Royal Bank of Canada, those ongoing worries over a Toronto condo bubble meltdown may be somewhat overblown as it seeks to calm an increasingly concerned market.


WEBWIRE

According to the Royal Bank of Canada, those ongoing worries over a Toronto condo bubble meltdown may be somewhat overblown as it seeks to calm an increasingly concerned market.

The Royal Bank of Canada, which is Canadaís largest bank and also its largest mortgage broker, says that the market bubble isnít as big of a risk as those in the media and in Ottawa are making it out to be.† A portion of the argument that RBC puts forth, is that a lot of the condo market in Toronto and surrounding areas is coming from the decrease in single-family dwellings in the area. With downtown property becoming more and more limited with an ever growing population, a lot of people have opted for the condominium lifestyle over the traditional single family homes.† With government trying to stall the ongoing urban sprawl in the GTA, itís become an issue of supply and demand with the need for nearly 40,000 new households in the area every year.

Another factor that leads RBC to conclude that the housing bubble is not imminent, is that there is still demand for new condoís in the city and surrounding areas. Most condo units in the city are finding tenants by the time the build is complete, and they expect this trend to continue with population growth.†

If in fact, there is some kind of boom and bust in the Toronto and GTA condo market, then it is expected that the pricing corrections will still be in the single digits, ranging perhaps somewhere between 3 and 8%.† This could occur for a number of reasons, including the reemergence of a strong single family home market in the city. It is also believed that the construction of new condoís in Toronto will wane over the next several years, due to the new mortgage rules, which will help stabilize this sector further.

Home Base Mortgages is a leading Toronto mortgage broker, which specializes in all types of mortgages ranging from home equity loans, second mortgages, private mortgages, mortgage refinancing, home mortgages and hard money lending.



WebWireID159347




 
 Second Mortgages
 Private Mortgages
 Mortgage Broker
 Home Equity Loans
 Home Mortgages


This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.