A few Toronto condo developers and some bank economists are concerned about the possibility of foreign investors retreating from the real estate market.
Foreign investors have been a major force in both the Vancouver and Toronto condo markets for several years. However, there is a growing fear that the jittery financial markets may send most of them running for the exit doors.
Exodus of foreign buyers can impact the Toronto real estate market.
That kind of change could have a serious impact on the Toronto real estate market.
Aside from the economic impact that this loss of investment may have, some economists believe that it may have a greater psychological impact on the Toronto housing market, plunging home prices.
Rental rates are not increasing as fast as condo prices making it more difficult for these investor-landlords to pay their mortgages and forcing many of them to sell their units.
Is the Toronto condo market likely to crash?
The Wall Street journal has compared Toronto’s condo boom to Miami, where thousands of foreign investors created a bubble that has caused the real estate market to crash.
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