Good news continues for condo owners in Toronto, Ontario, according to two reports from Scotiabank and Canada Mortgage and Housing Corporation. After years of condo development growth -- almost mirroring the same type of growth in its U.S. counterparts -- the forecast is for a soft landing of the condo market over the next two years.

The soft landing, according to MoveSmartly.com writer John Pasalis means at least four things:

1. A record number of condominium apartments will start construction in the Greater Toronto Area in 2008. In 2009, condominium apartment starts will dip slightly to the second highest level on record. Low-rise home construction will trend lower.

2. Sales of existing homes will moderate over the next two years, but remain very high from a historic perspective.

3. The average selling price for existing homes will grow at a more moderate pace in 2008 and 2009.

4. Job creation will remain positive in the Toronto region, but growth will be slow.

The CMHC report predicts that the coming record number of sales will not force condo values downward. The higher supply will slow the appreciation from the 10 percent condo owners enjoyed in 2007 to about half that amount in 2008.

Scotiabank contends "Canada's real estate market is not overbuilt. While inventories of unsold homes are trending higher, the number of unabsorbed units, including condominiums, remains well below prior cyclical peaks in most major centres."

Published: June 18, 2008

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Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.