February 15, 2010
TORONTO – The January edition of the Altus Group Housing Report examined the performance of the condominium market in Toronto and Calgary. The group’s findings highlight some of the factors which have led to Toronto’s strong rebound over the last year, and how Calgary, which is still struggling with its own downturn in this market, can learn from it.
The Altus Group mentioned a reduction in the price of new condos, attractive product and revised marketing strategies as three of the key factors which led to the surprising rebound in 2009 GTA condo sales. It also pointed to reductions in new starts and the shelving of other projects as being important factors in reducing unsold inventories.
As to the case of Calgary, the Altus Group noted its concern for the city’s condominium market has only grown since 2009. It pointed to a slowly dwindling inventory of unsold units, which, at the current pace of sales, would take three years to absorb.
The report expresses cautious optimism as to the outlook for 2010. It suggests there may be an increase in demand from investment buyers, but that uncertainty remains as to whether or not enough renters exist to absorb all the new supply.