Saturday, February 9, 2013

Toronto Condos Skewing National Data

CMHC Preliminary Housing Start Data Graph of Absorption of Condo units.

The absorption rate has yet to be impacted, and if there are enough wealthy foreigners, perhaps it won't ever be, but the market has yet to be tested. This is quite a bubble of inventory coming in the pipeline, starting to build at around 17 months ago. Assuming 18-22 months is the shortest time from breaking ground to delivery, we have a few more months before people are going to have to get full financing or do a re-assignment, or bail, depending up on their circumstances. 

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