Developers in Toronto had an extremely busy February as Canada’s biggest real estate market had its busiest month since 1948.
5,677 Units in February began construction during the month which mostly consisted of projects such as condos as multiple unit-projects rocketed according to Canada Mortgage and Housing Corp.
Traditionally, the majority of Toronto condo units are purchased before building begins, so the latest surge may only reflect past sales. However, the report also suggests developers are betting the condo market will be less affected by headwinds of higher interest rates and tighter mortgage qualification rules that are currently hitting Canada’s most prominent real estate market.
Robert Kavcic, an economist at the Bank of Montreal weighed in:
It’s probably lagging a little bit. Historically you tend to see supply follow demand, The other nuance here is that a lot of the policy changes we’ve seen over the last year, they really had a bigger impact on the higher end of the single detached housing market
