Condo Price Correction in Toronto - 2021 (-10 to 15%)
Full disclosure - I am a recent unfortunate buyer of a condo in the Toronto Market.
Over the past few years, I've heard the same narrative told over and over again. We have a critical supply issue of housing in Toronto proper. We need more inventory to
curb demand. There are a lot of net immigration coming into Toronto. The government has to have policies to increase the number of builds.
Unfortunately these myths are perpetuated by real estate agents, who as a result of:
a) using metrics incorrectly (some of their favourite metrics are YoY, Days on Market, Number of active listings),
b) use the "last sold" as a comparable for future prices
Begin to artificially raise the prices of real estate for everyone. After reading reports such as from Realosophy, Urbanation, the fact is:
a) There is no immigration problem
b) Prices have gone out of control, comparatively to a house. You can purchase a house for only in some cases, a couple of hundred thousand dollars more.
I'm predicting that condos will have a correction in prices once the new supply comes in, at -10/15%. Don't say I didn't warn you!