Rising mortgage rates could deal a blow to Toronto, Canada, condo builders, who have completed 17,000 units in the past year and have more than 50,000 units under construction, “macroeconomic strategist” Sheryl King writes in The Globe and Mail.
Builders, King says, “are sitting on more than three years’ supply at a time when it will only take another 50 basis point rise in mortgage rates to put a rental investor into a position of negative carrying costs.
“From oversupply, to reduced price expectations, to surging mortgage rates, the Toronto condo market is feeling the squeeze from all sides now. Here’s hoping the spike in mortgage rates is short-lived.” Source: theglobeandmail.com.
