Connect Asset Management Predicts Toronto Condo Price Growth to Stabilize in 2017

Connect Asset Management predicts that price growth in Toronto's condominium market will stabilize in 2017, preventing significant price spikes in most areas of the Greater Toronto Area. The firm suggests that increasing supply and a shift in demand towards larger units will balance the market.

Despite a generally hot real estate market, Connect Asset Management notes that condo price increases have been more moderate compared to single-family homes. The firm does not anticipate a condo market bubble, citing CMHC's assessment that the Toronto condo market is not overbuilt.

The analysis acknowledges a high level of new condo construction, which could pose challenges if supply outstrips demand. However, recent data indicates a decline in unsold inventory, reducing the risk of a true glut in 2017.

A key factor in the forecast is the rising demand for larger condos, such as two and three-bedroom units. This is driven by buyers priced out of single-family homes seeking larger condo options. The firm anticipates that price increases are likely to continue primarily in downtown Toronto.

Connect Asset Management's predictions are contingent on the Canadian dollar remaining stable, interest rates staying low, and continued activity from foreign investors.