Posted by: MonsterMortgage.ca
Canada’s national housing agency, Canada Mortgage and Housing Corporation, has released results from a survey indicating that 17% of the condominiums in the Vancouver and Toronto markets are owned by investors. Some observers and analysts have criticized the agency for not maintaining accurate or detailed information concerning the profiles of owners in the Toronto and Vancouver condo markets. Condominium markets have been a talking point for a number of years, due to concerns surrounding the formation of a ‘bubble’ in the market, and due to the vast number of condominiums being built or nearing completion in these markets.
The survey was conducted of 42,426 households in the Toronto and Vancouver metropolitan areas.
In a recent statement, chief economist of CMHC, Bob Dugan said, “CMHC continues to explore opportunities to enhance the availability of information on foreign and corporate investment activities in the housing market.”
According to the survey, approximately 58 percent of the investors expect to keep their most recent investment for over 5 years, while approximately 26 percent of investors planned on retaining their condominium for less than 5 years. CMHC also indicated that 12 percent of investors planned on flipping their most recent condominium purchase for a profit within a year of their purchase date.
Although some analysts have indicated that the condominium market may be overvalued up to 20 percent, recent reports have indicated that condominium prices in Toronto continue to rise. Proponents of the condominium market point to continued migration to urban centers as a reason for condominium demand.