Toronto has been infamous as one of the least affordable cities in the world. Buying a house in Toronto is always tough, but it might be the time for prices to come down. The cause, however, is going to be a full-on market crash. Why is it so?
An update on December 18 from a brokerage reads, “As Canada’s financial capital continues to post impressive housing numbers, the talk of the town has been a real estate bubble.”
“Despite a slump in sales activity, Toronto real estate prices maintained their upward trajectory… although there was a drop in demand, growing population levels and a robust Toronto economy are supporting the latest wave of home sales. With interest rates reaching their highest levels since before the global financial crisis and because monetary policy functions with a lag, there could be a slowdown coming,”
The only possible way this trend would come to an end appears to be a market crash. You might be interested in knowing what would happen in case of a market crash. Prices become unsustainable and buyers withdraw. Due to high-interest rates, affordability gets out of the question, and the market becomes motionless. As a last resort, prices are eventually dropped.
Much uncertainty surrounds the real estate market as there are both positive and negative signs about its future. What do you think will be the future of the Toronto real estate market?
Since before the Budget Day on April 16, Prime Minister Justin Trudeau has been making announcements addressing the housing crisis facing the North American nation. From incentivizing the construction of affordable housing to reconstruction, these plans promise to improve the housing infrastructure of Canada.
The real estate sector’s most influential leaders and innovators will be gathering in Calgary for a conference that, in all probability, is going to be the biggest real estate event in Alberta. Titled, ‘Rock’N REAL ESTATE 2024’, the BUZZ conference will be taking place in Carriage House Hotel & Conference Centre on Thursday, May 2. The meeting will open at 7:30 am with a light continental breakfast. The discussion will go from 8 am to 5 pm followed by an hour of networking session at the end of the event. Cocktails on the house!
Canadian housing activity was largely stable in March, but a key spring selling season lies ahead. Existing homesales edged up 0.5% in March (seasonally adjusted) and were up a modest 1.7% from sluggish year-ago levels (although an early Easter long weekend likely reduced volumes somewhat). While current activity might seem quiet compared to the exuberance in 2021 and early 2022, sales volumes are trending about in line with pre-COVID norms, albeit at the low end of that range.
“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that”, said Canadian Prime Minister, Justin Trudeau about the country’s new housing plan.
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