The Toronto housing market in Canada is hotter than ever. Between Torontonians and national or foreign buyers, the demand continues to rise and drive up the cost of new condo for sale in Toronto. Despite skeptics predicting decline or the “burst” of the housing bubble, all facts point to the steady rise of prices beyond 2016. New condos for sale Toronto, such as The Davies Luxury Condos, are great investment properties for buyers. These units sell quickly in the hot Toronto market located in the Junction Triangle and perfect for decision-making ready residents and real estate investors looking to get in the market in before the end of 2016.
Three Reasons Why The Toronto Real Estate Market Will Not Crash in 2016
Countless real estate experts have been watching the market and have come to the conclusion that there will not be a crash in prices in the upcoming year. We’ve done our research and pulled together the top three reasons why they’re right.
- A hot economy = a hot real estate market.
If you look at Toronto’s financial history, it’s easy to see the housing dips are directly correlated with a shrink in the economy. When the economy shrinks, people lose their jobs and are forced to sell their homes. When supply rises and demand shrinks, the price of homes has to adjust accordingly. A recession is not in Toronto’s foreseeable future. Actually, a 2.8% economic growth for the metropolitan area has been forecast for the coming year, bringing with it a rise in employment opportunities that will likely bring in a new wave of people looking to work and live downtown.
- The demand outweighs the supply.
Supply and demand is simple. As more people move in to the city, the demand for housing increases. Builders can’t keep up with the ever-growing population, leading to a shortage in housing. Any new listings are almost immediately picked up by buyers eager to live in the metropolitan area.
- There’s no “bubble” to burst.
Anyone who claims the Toronto housing bubble will burst does not have a clear understanding of what causes a bubble in a market. A bubble is when individuals purchase land or houses on speculation, with the purpose of making a quick dollar. This is not the case in Toronto. People are purchasing homes because they want to be apart of the vibrant community. As long as the city continues to thrive, Canadians and foreigners will want to move to the country’s cultural hub.
If you’re looking to purchase a home in Toronto, do the necessary research and give The Davies office a call at 416-873-0862 to learn more. Learn more about the city’s real estate market, the impact of foreign buyers tax in other Canadian cities and tour new condo for sale downtown. A member of The Davies team would love to show you around the luxury presentation center to help you determine if our community is the right fit for you and your family.