Despite warning from Real Estate analysts for more than a year that the Toronto Condo market is overbuilt, the average condo price and sales continue to rise.
New Toronto Condominium high-rise sales have increased by 50 per cent in May to 2,433 sales.
Condominiums are also contributing to the 12 per cent increase of new homes sales compared to the same time last year.
Analysts now feel these sales are a result of investor activity in the Toronto Condo market.
According to Toronto Real Estate market research firms, investors are buying up to 45 to 60 per cent of all new Condos.
Condominium rents in Toronto however have not increased as much as the price resulting in lower cash flow these investors. It appears many of these investors are waiting now for price appreciation rather than cash flow for their profits.