Why I think Toronto’s condo market might be heading towards a correction – a piece from OREA’s textbook

I will be keeping this post very short. I was reading an OREA textbook and they gave examples of market corrections in the real estate sector (it certainly looks like they are not agreeing with the property market having a cycle though). One example that they gave for “Real Estate Market Correction” sounded awfully familiar to me (I don’t think that they know that they’re actively discouraging the reader by presenting this “Example”). Before I post it, imagine the condominium market in the GTA. Imagine all these tiny lots with less-than-a-century old building with that huge sign that says “Development Proposal”. Imagine all those projects that are being launched with fancy names (One this, One that!). Hell, you don’t even need to imagine this. Just walk for 10 mins in any direction. Now, this:

Screen Shot 2017-12-07 at 4.36.37 PM

 

PLEASE read this table carefully. PLEASE! Now, look at where it says “You are here!”. Read what’s written under “Forces and Factors”. Now if you dare, read the next part. EQBank┬áis an online bank (seems to be the next trend) that gives 2.3% interest over deposits at the time of writing of this. Just sayin’!

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