Risk of condo market overheating: CMHC

Unstoppable condo sales put Toronto market at risk of overheating: CMHC


The real estate market in the Toronto area is in danger of overheating, with condos driving much of the momentum, according to a new report from the Canada Mortgage and Housing Corporation.

The CMHC’s quarterly market assessment, released Thursday, found that the Toronto area and Hamilton were showing “moderate” signs of overheating, with home sales outpacing new listings in the third quarter — a situation that has happened at least twice in the previous 12 quarters.
According to the CMHC’s Dana Senagama, the condo market is showing no signs of cooling off, despite plenty of new construction.

“Really, the activity is mostly in the City of Toronto, especially in condos,” said Senagama, CMHC’s manager of market analysis for the Toronto region.

There is still a serious shortage of condos listed for sale in the downtown core.  The sellers’ market will continue to push prices upward.