Oh, Canada! Your condos are too bountiful
Canadian condominium towers are reaching for the sky — fast — and that has got some economic observers concerned condo developers’ reach is exceeding their grasp.
The OECD has named Canada one of four advanced economies with the world’s most overvalued housing market (New Zealand, Norway and, to a lesser extent, Sweden are the others). The problem, the OECD says, is that despite overbuilding housing prices are still rising.
Closer to home, the Bank of Canada has issued warnings that an overbuilt and overpriced condo market is putting the nation’s households, banks and the economy at risk. Toronto in particular is racking up a large inventory of unsold high-rise condo units that are either under construction or in the pre- construction stage. The Bank of Canada noted the number of unsold units in