Toronto New Condo Sales Drop 66%, While Prices Soar 40% In Weirdest Correction Ever

You can read the article in full for yourself by clicking the link below:
https://www.huffingtonpost.ca/2018/04/25/new-condo-sales-toronto-housing_a_23420272/
Well, like I’ve been saying for years, the Canadian economy is going to start looking weird and here goes the mainstream media talking about the Condo market looking weird. If you want to know why the condo market is looking weird, the answer is simple there is more incentive for a developer to build a condo than there is for a developer to build a rental apartment. The difference between a condo and a rental unit is that you can store money in a condo.

Follow me on this please. In Toronto, Canada’s largest city there exists this thing called RENTAL CONTROLS big deal you say lots of cities have rental controls, yes but in Canada the federal government is competing with rental controls using a mechanism called the Crown corporation known as the Canada Mortgage And Housing Corporation(CMHC). This is a federally taxpayer backed mortgage insurance company, which will insure investors that Toronto or any other financial institution will not reach a bottom. This is the incentive pushing the mortgage markets in Canada. Unless a company decides to build high end apartment rentals, there’s no reason to build apartment rentals, so instead they’re building condos and the memo on condos right now is that they’re backed by the Canadian taxpayer, meaning that foreign capital for the most part is protected.

So this makes building a condo an easier sell for a developer, it’s the reason why Toronto’s skyline looks so bland, there’s no incentive for developers to create unique buildings because they know the bland ones will sell. Canada has become a storer of wealth, a piggy bank for foreign capital and it’s getting more and more obvious. How long will this last? I don’t know, I can’t say, because Canadians seem resilient to inflation, at least so far. As long as Canadians have access to credit, pay their minimum monthly payments and accept a lower standard of living I guess this disaster can go on for years. There are all these people calling for a crash on this date or a collapse on another date. I’m not sure what’s ahead, but like I said for years the economy is looking weird. Now the mainstream media is saying it.

I’ve done my research, I think it’s time people do theirs.