Last month Toronto construction set a new record dating back to 1948 for the amount of new construction!!!
Despite the general slowdown of the real estate market, Toronto condo builders had a good month in February.
Builders started Toronto construction work on 5,677 units which set a new record! Most of these were multi-unit dwellings so likely they represented most condominiums.
Keep in mind that many of these Toronto construction units may have been pre-sold. Many prospective buyers saw the new mortgage rules coming on January 1st so they purchased properties in December even before they were built. Others got pre-approvals in December that are still valid today and haven’t expired yet. So it could be a case of supply following demand and that the market will catch up after the December rush.
Also, the new rules seem to have had a bigger impact on single-detached homes.
Why are condos becoming more popular? It’s partly due to the new mortgage rules limiting purchase power. Condos are less expensive and more popular with immigrants.
Robert is a licensed mortgage agent and financial planner at Mortgage Architects located in Hamilton, Ontario and serving Toronto and all of Ontario.