Baby, we got a bubble!?

[Admiral Beez]

High borrowing costs, record condo completions lead to oversupply in Greater Toronto Area

A report by TD economist Rishi Sondhi said sales activity hasn’t been absorbing supply fast enough, with July condo resales in the GTA down 25% from pre-pandemic levels

www.theglobeandmail.com

Paywall free: https://archive.is/0q1iz

Um. The only way any market can have both an over-supply and over-demand of any product is when prices are not adjusting to meet the equilibrium of supply and demand.

Toronto does not have an over supply of condos, instead we have manufacturers, resellers and financiers of condos that are pricing their product over what the market can/will pay. Government, land owners and developers need to find a way to make it feasible for true 2bdrm units (no dens or interior glass doors) at $500k. That’s what the market wants to buy.

 

[Undead]

Yeah I believe the condo market has just returned to balance--5 months of supply at current sales volume, if I remember correctly.

Also:

Rent relief follows federal cap on foreign students

Ottawa’s reform of international student visa program helped keep a lid on asking rents over the summer after years of spikes

www.theglobeandmail.com

"That month the federal government capped the number of international student visas it issues, with the move expected to reduce Canada’s foreign student intake by 35 per cent this year compared with last year. However by some estimates, international study permits could be on track to drop by almost half this year.

While it’s impossible to say exactly how much of the asking rent slowdown is owing to those policy changes, it is likely significant, said Mike Moffatt, a senior director of policy at the Smart Prosperity Institute."

Always nice to see the "lack of supply" meme take another hit.

 

[afransen]

That sound you hear is the Liberals furiously trying to reinflate the bubble.

Extending amortizations to 30 years for first time buyers on existing homes (previously it was just new build) and raising the insurable mortgage amount to $1.5M from $1M. Both are designed the prop up prices and protect the wealth of the homeowning boomer class, the most loyal remaining part of the LPC coalition. It will do very little for affordability, just saddle young people with more debt, and increase risk in the financial system, as low downpayment 30 year amortization mortgages are at high risk of being underwater after the first 5 year term.

Ottawa to expand 30-year amortizations, raise insured mortgage cap - National | Globalnews.ca

Finance Minister Chrystia Freeland announced proposals Monday to expand the availability of 30-year amortizations and to raise the price cap for insured mortgages.

globalnews.ca

 

[Deadpool X]

Is there any thread on the current mortgage interest rates?