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Toronto Homebuilder Says Prices Could Fall 20% Before Steadying

Mitchell Cohen, chief executive officer of Daniels Corp.

Mitchell Cohen, chief executive officer of Daniels Corp.

Photographer: Della Rollins/Bloomberg

One of the biggest real estate developers in Toronto says home prices in the city could drop as much as 20%. Longer-term, though, sustained demand from immigration will prevent larger declines that could destabilize the market more broadly.

“Will there be a dip in prices? Yes,” Mitchell Cohen, the chief executive officer of Daniels Corp., said in an interview. “Is it 50%? No. Is it 10 to 20%? Probably. I don’t see a catastrophic bursting of this balloon that we’ve been living in because Toronto, the greater Toronto area, for Canada is a very important economic center. People will continue to come to Toronto, want to live in Toronto. And the units that we are building will be filled.”