Recently, there have been a lot of news with respect to an over supply of condos in the GTA with prices being overvalued by 25% and with a crash predicted in the near future.

Being involved in the process everyday and closely following the downtown Toronto market I would say that this does not truly represent the current situation. Contrary to these articles, there is very little inventory in the downtown core, both for units offered for sale and for lease. Information gathered by the Toronto MLS system showed that the total sales for 2011 amounted to 89,347 which is up by 4% in comparison to 2010. The low borrowing costs have kept the Buyers confident in purchasing homes that will cover their mortgage payment along with other living costs and this trend is expected to continue in 2012. Some have suggested that if the Buyers hadn’t been constrained by a shortage of listings in 2011, that we might have seen a new sales record in the Greater Toronto Area. The Sellers are still in the driver’s seat and the Buyers still have few options to choose from.

We have also been leasing units to great, qualified tenants within weeks of going into the market. Our Team was able to rent out over 15 units in a brand new building in the months of October and November which are typically very slow months in the rental market.

Do not let what you hear in the news effect your real estate decisions especially given that your investments are long term projects where your objective it to buy and create equity with tenants paying off your mortgage.