Is Toronto Experiencing a Real Estate Bubble?
Tags: Toronto, gta, housing bubble, mortgages, toronto real estate,
Toronto is a North American metropolis that has started to get its due with the likes of New York, Chicago and Paris in the last decade or so. It’s a been a slow ascend to global recognition and the current housing market is a glimpse into the value of Toronto both for businesses and residents.
What Defines a Housing Bubble?
A housing bubble is usually defined by a noticeable uptick in housing prices based on demand but fueled by speculation. The bubble grows as demand increases but as the demand is met by supply the bubble has the potential to burst. Much of this is artificial. The demand was never real and more of a miscalculation by buyers.
Why Toronto’s Market isn’t a Bubble
The bubble that so many people and pundits have warned against is probably just Toronto catching up to other major cities. The speed and craziness of it all makes it feel dangerously like a bubble, but it’s on par with what other major cities have experienced.
As Canada’s foremost job creator, Toronto constantly attracts newcomers from all over the world. Every year new industries and companies open or expand in Toronto and this brings waves of people. People need a place to live which fuels the housing market. It’s hard to fathom this changing any time soon.
Toronto’s Real Estate Market is a Great Investment
There are few safe investments in the world. Most markets and industries are mired with variables that can drop or drive value. That’s the reality that investors face. The Toronto real estate market offers a safer bet since it has provided relative returns year over year for a while now. Even the condo market has defied expectations and grown with more growth predicted on the horizon.
The term “bubble” gets thrown around a lot and if one honestly looks at Toronto Real Estate and how the city is expanding, it feels like a genuine investment opportunity. There might be dips here and there but it doesn’t have the signs of bursting.