Housing bubble has been the headlines in Toronto recently but it may seems as an exaggeration considering the fact the in Canada, the average price for condominiums is notably cheaper than in Vancouver. It is even a markdown price in comparison with New York, Hong Kong and London prices.
Mark Renzoni, president of global commercial real estate giant CBRE explains that Toronto home prices are in line with other countries the context of global pricing and although many claim foreign capital is fueling prices, Canadians are the sole contributor towards home prices as more first-time buyers are trying to enter the market. Renzoni went on to add Canadians confidence in the job, market, more available jobs, low interest rates and a sense of optimism are driving home prices.
The assertion that foreign buyers are as fault is overwhelming. Interesting foreign buyers in Toronto are mostly prefer family homes as most of them have kids in university, family members and they are investing in residential real estate as they are confident in the standards of the product.
But in terms of condo prices, Toronto’s prices are relatively cheaper than in other global markets.
As the world’s population increase, there is the need of people to look for places to live hence it leads us to the fact that home prices are driven by demand and supply. Currently, most countries are facing supply issues as their demand for more homes continue to rise.
Recently, Toronto real estate was described as overheated by some bank economists as the average home price rose 20% last year. In January, average prices increased 22% with the cost of single-family homes going above $1 million.