This time around, many wonder whether a specific type of housing could falter while other categories remain strong. Most eyes are on the condo market in such a scenario. Toronto — now the largest condominium market in North America — is the epicenter for the concern and on Tuesday another set of statistics showed that market foundering once again. “A tale of two markets is exactly what we are dealing with. There are different things happening in each market,” said George Carras, president of RealNet Canada Inc., referring to the high-rise versus low-rise comparison. His research company just looked at new homes but he says it is a pretty decent proxy for what will happen to the existing homes market down the road. http://business.financialpost.com/2013/08/20/condominium-prices-falling-while-low-rise-homes-continue-to-soar/So, to paraphrase Mr. Carras we have become two distinct camps of inventory; one of detached houses and the other condominium high rise apartments. There are many facts, figures and percentages bantered about in this article that culminate in a completion rate of 19,000 units annually that must be absorbed into the market or they will be vacant and could BUBBLE OUT!
A drop in Toronto Condo prices would be preceded by Investors unable to RENT their units, therefore choosing to DUMP, dispose of, SHED at a Fire Sale Prices as additional inventory COMPETES Into the saturated market; BUT, This is absolutely in conflict with the continued increases in residential rental rates in condominium units... because no one is building rental housing anymore.