AgentMarkets & Economy

Toronto condo boom stirs bubble fears

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When is a bubble not a bubble? That's the big question Toronto economists and developers have been trying to answer in regard to the red-hot condominium market in the city. Toronto, with high-rise condo towers sprouting like last decade's Dubai, looks like a bubble ready to explode, but there are plenty of local pundits who say, "Nay, this city can handle every condo unit coming its way." Here's what's going on: In 2010, about 15,000 condo units came into the market, and this was followed by a record year in 2011 with 18,000 more condo units opening up. The market is really just gearing up. "We will average something closer to 20,000 units over the next couple of years," said Shaun Hildebrand, senior market analyst for Canada Mortgage and Housing Corp. It gets better. "We will end up 2011 with a record of almost 27,000 condo sales, that will be about 3,000 more than the previous record in 2007," said Ben Myers, executive vice president of Urba...