More condos are coming on the market..
A record number of condos were completed in Greater Toronto in January (10,368), a whopping eight times more than the average of the past decade. Construction delays had builders playing catch up with the record number of multiple-unit dwellings started in 2012 (37,406 versus the past-decade norm of around 25,000 and last year’s 20,099). That, in turn, was a response to the record number of new condos sold in 2011 (28,190). Most of the completed units are presold, but the increase still lifted the number of unsold units to a 21-year high (1602). This will slow the increase in new condo prices (3.7% year over year in the fourth quarter). However, as long as demand remains healthy (last year was the third best on record), prices should hold steady.