If you are looking to buy a home in Toronto, then you have most definitely noticed some pretty hefty price tags. Home prices are on a dramatic rise throughout Toronto, particularly in the Greater Toronto Area. There are several elements that have contributed to this increase (20% to be exact, since 2016).
Despite efforts from the government to slow down this upswing, the prices continue to rise. In the Greater Toronto Area, the average price for a home is around $730, 472. This is an increase of roughly twenty percent from the year prior.
Experts are baffled and are scrambling for a definitive reason to explain this trend. One of the more prominent theories being put forth is the notion that all of these skyrocketing home prices come down to euphoric speculation. Ultimately, the general consensus is that many different factors can be playing into the current state of Toronto’s real estate market. The new mortgage rules that have been put forth by Ottawa, Donald Trump’s stance on trading with Canada –All of these reasons could have contributed to the current state of the market in the Greater Toronto Area. Some even speculate that the potential of a trade war with China is contributing to the chaos that has created the Toronto real estate market in its current form.
Finally, some argue that the prices can be traced to the increase of demand, particularly in terms of its relationship to the decrease in supply—more people are searching for homes than the market can supply.