Waiting For Toronto's Housing Market To Crash?
Are you one of those people who is considering waiting for house prices to decline down before you decide to buy home or investment property? If so, the overwhelming consensus is you should be prepared to wait a very, very long time.
What supports this statement? Well the Canadian Real Estate Associations latest news release, which has specifically forecast continued strength in Canada’s housing market through to 2021.
The report outlines that home prices will increased 9.6% year over year and that supply shortages will continue to put significant upward pressure on home prices.
Supply is for the most part dominated by the baby boomer generation who aren’t quite yet looking to downsize. When you add these 2 factors together, you’ve got a pretty clear guidline for continued strength in housing.
Supply shortages continue
According to CREA, housing supply shortages are still the main reason for the continued upward movement in house prices in Toronto. In December, the number of new homes for sale slid over 2%. This dramatically tilts the control of pricing to the sellers side of the market.
Demographic factors don't lie
Demographics will always help to explain why trends act the way they do. The data does not lie. It's pretty simple really, when people are not selling their homes in Toronto, which is contributing to lower supply, while at the same time millennials purchasing power is steadily increasing, which is driving more and more demand, the end result is a heavy upward pressure on house prices.
Population growth, including immigration to majour cities is also a huge factor. In 2019, Toronto had the fastest-growing population of an city in North America. Again pretty straightforward data analysis, more people means more people need housing, so it’s no surprise that Toronto and the surrounding GTA is still seeing and will continue to see house prices move upward..