Many people have pointed to the record-high costs and booming real estate market across Canada and anticipated an end in sight. You may have heard the concerns and projections. Ranging from comparisons to the US housing market to previous recessions, there has been a lot of chatter surrounding the demise of a market that has shown no signs of slowing down.
So what is really going to happen? While no one can say with absolute certainty what the future holds for Toronto and Canada’s housing markets, many experts are now silencing naysayers and worriers with predictions of a ‘cooling off’ period rather than a meltdown.
Read on and find out why that new condo project in Toronto could be a great investment for you today and in the foreseeable future.
Signs Point to a Moderation, Not a Crash
If you are wondering whether a new condo in downtown Toronto is a worthwhile investment or doomed endeavour, consider the following progression of ‘crash’ predictions to talks about moderation and correction:
- Who Said ‘Crash?’: All good things come to an end, right? That’s what economists thought when they began predicting the eventual demise of Canada’s real estate bubble. As the prices steadily rose and more and more developments began to get the green light, they assumed that the only way for it to change was for the bubble to burst. The real estate market crash was predicted largely based on record highs and new construction, coupled with unexamined and unfounded comparisons to the recent US housing market collapse.
- Is It Exaggerated?: Experts are now saying that concerns, while valid, were not supported by evidence. While records are being broken with new condo projects in Toronto and rapid development is occurring across the country, the market shows no signs of a full crash. Supply is (more than) keeping up with demand, and although the skyline is changing, the implications for the city’s housing market are not significant. A recent analysis from RBC explained that changes of “any significant magnitude” were unlikely to occur for years to come.
- Correcting Versus Crashing: Statistics have shown that most new condo projects are being occupied, becoming homes for many residents soon after completion. Visions of empty condo buildings that will lead to eventual market degradation are just that: visions that the research does not support! Instead, a cooling market trend is anticipated as interest rates are expected to rise. Mortgage changes will also impact buyers, but the result will not cripple the market.
Invest wisely in a luxury condo in downtown Toronto that offers future rental potential and the finishes and layout to be your long-term home. The Davies overlooks Robertson Davies Park, making it the perfect location for dog owners and young families to put down roots. Just a short walk to the TTC, the trendy Yorkville area, and fantastic schools allow you to take in the action and diversity of the city while living in a quiet and safe neighbourhood.
Contact The Davies at 647-360-9588 to schedule an appointment or register online to request more information. Check out our beautiful new condos in downtown Toronto and consult our friendly team to discuss your options.