Economics
High-Flying Toronto Condo Market May Be About to Hit Turbulence
- Evidence of slowdown emerging as builders offer incentives
- Investor economics are fading as price gains decelerate
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The chill that has crept over some segments of the Toronto housing market may soon extend to one of its persistent hot spots: condominiums.
Evidence of a slowdown is emerging as new rules make it tougher to get a mortgage and borrowing costs rise for the first time in almost a decade. That’s reducing the appeal of Toronto condos, whose average price now exceeds C$560,000 ($420,000). Projects are taking longer to sell and, in some areas, developers are using incentives to move units.