Predicting any housing market is difficult. Predicting Toronto’s housing market requires almost Nostradamus-like abilities. The Toronto market has held strong for several years now, but the recent dip has led many prognosticators to wage a bet that another spike is looming.
Where will Toronto’s housing market end up a decade from now?
There are signs that Toronto will come out of the recent market lull and enter a period of growth that will send housing prices soaring. It might take another year for this to happen, but the market is expected to increase in value. This could create some negative scenarios for those dreaming of homeownership.
Once the demand races beyond the supply and people adjust to new policies and regulations, the market will turn.
Housing Will be Less Affordable
For years, there’s been discussion about Toronto’s housing being unaffordable, especially for young professionals and the middle class. With the housing market bound to rise in value, there’s a chance that affordable housing will become more challenging.
The condo market should continue to hold strong for the next few years but the housing market should outpace it at some point.
Remember, once the market starts to heat up, there will be a rush to buy including speculators looking to make a buck on an investment. This could speed up the market and inflate it to unsustainable levels.
A Good Time to Enter the Market
Now is a good time to enter the market as prices are relatively low. There are some obstacles—high interest rate, stress test, lack of supply—but if a person can get approved, there’s a window where aggressive bidding could pay off in the future.
A Decade Later
It might seem futile to try to predict the future of a volatile housing market but it’s a worthy exercise. The current state of Toronto’s housing market is temporary and the future will affect tens of thousands of households throughout the GTA.
Researching what will happen in a year or two or ten can help someone make more informed decisions as to when to buy, when to wait and when to invest.