by Jessica Granville | May 18, 2017 6:23 am
Real estate prices in Toronto continue to rise and they don’t appear to be slowing down anytime soon. Pick up a local newspaper, and it is almost guaranteed that there will be at least one article on this topic. Everywhere you look, there are stories about foreign buying, real estate bubbles, and the increase in high rise construction. Experts are trying to predict if, and when this “bubble” will pop, but of course, their guess is as good as any, and no one knows for sure what will happen and when that will happen. Foreign investment continues to rise, and this is leading to discussions of foreign buyer tax and penalties for purchasing homes and leaving them vacant. All of this foreign money is negatively affecting the market, causing local residents to be pushed out of the market.
The younger generation can no longer afford to purchase a home on their own in large cities such as Toronto and Vancouver. For some, there is an easy solution to this problem: purchase a home outside of the city and commute to work. This sparked a trend of people deferring from looking at houses in Toronto, to looking for houses for sale in Brampton. For others, this is not an option; perhaps they do not own a vehicle and would like to use public transit to get to work, meaning that they must live in the city, near their workplace. The only available solution to those who are in the predicament is to look for apartments for rent because purchasing their own home is not possible at that stage in their life. While renting does provide some benefits such as not having to pay for maintenance and repairs, and not being tied down, a lot of people view it as pouring money down the drain. A lot of people think this way, because unlike monthly rent, mortgage payments actually contribute to home ownership, whereas rent money is money that you will never get back.
Overall, prices have been on the rise since the mid 90’s, apart from a setback caused by the recession in 2008. While it did cause prices to drop, they did not get affected drastically, and shortly thereafter, the prices continued to rise and are still on the rise in 2017. The increasing prices are beginning to scare the younger generation because at this rate, they feel like they will never be able to afford to buy their own house. Proof of this can be found by visiting real estate sites such as ullow. If you go online and try to find a detached house in Toronto for less than $1,000,000, you may end up looking for hours because they are very hard to find. In the case that you do find one, it is likely in a very run-down state that needs to be torn down. Prices have become so ridiculous that a lot of people spend over $1,000,000 for a Toronto home on a very small lot, just to tear it down and build a new home.
As much as experts will try to convince us that they know exactly what will happen to the prices and when it will happen, no one knows for sure. The real estate market is nearly impossible to predict, otherwise everyone would invest large amounts of money when they know that prices are at an all-time low and sell when prices reach an all-time high. Of course, educated guesses can be made, but they are merely that: guesses. The only option we have is to sit back and watch as it unfolds.
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