Real estate in Toronto is turning out more than what investors bargained for. Home prices in the city have gone so high that neighboring markets as far off as Sudbury are also facing the consequences of the high prices in Toronto.
Aside for Vancouver, Toronto is now one of the most unaffordable cites for real estate and it is affecting the buying trends of home shoppers.
Earlier this month, the Canadian Mortgage and Housing Corporation declared that home prices in the city are affecting the prices in other nearby region. And one factor that is fueling the increase in prices in such areas is that home buyers fear that if they do not buy homes now in other reasonable markets, they might not get the opportunity again to buy a home.
For many Canadian home buyers, the home buying process is a form of investment but words of advice suggests that Toronto residents should sell their properties now or rent and then invest the balance. This is most especially for home owners that are above 60 or have no family relative or member to live the property to.
Home prices like stocks are liable to change at any given point in time but for many home experts, they claim that the high home prices in Toronto is as a result of poor listing strategy in the city. Presently the city is experiencing an imbalance in the demand and supply level of homes.
There is a higher demand of homes and less home supply and this immediately affects home prices.
Despite the fact that Vancouver landed in the third place of the 2017 Demographia International Housing Affordability Survey, Toronto is at a fast rate following the footsteps of Vancouver.
Out of 406 housing markets, Toronto is at the 28th position with median home prices 7.7 times above the media earnings of households.
With this in mind, many home owners might be weighing their options of either selling or renting their properties. But the catch to this is that they will have to find new homes with spaces equivalent to their homes. Things become more challenging with the high home prices.