The vast increase in prices of homes and properties intertwined with the constrained supply of resale homes and new homes and the low amount of houses going up for listings has created a ruthless housing market in the Greater Toronto Area (also known as the GTA).
This problem of shortage of supply mostly affects first-time home buyers who are being g beaten by potential move-up buyers who have outstripped most situations or circumstances with multiple offers. This has been causing an even more shortage of supply for the first time home buyers in the Greater Toronto Area.
Most economists believe that before 80 per cent of the land meant for building is actually being built on; it may take about 15 or 16 more years. If added up it gives us the year 2031 but then again, it may take more time. About 20-30 per cent of the land which was meant to be developed are actually developed right now. This percentage is nothing compared to the 80 or so per cent that is not.
In 2016, there were a number of 928 housing resale listings in the city of Halton, 1,933 in the city of Peel, 5,070 in the city of Toronto, 1,929 in the city of York and 710 in the city of Durham. However, the number of housing resale listing this year so far is not as good as it was last year as the numbers in these various cities kept decreasing. In the City of Halton, the number of housing resale listings went down to 538, in the city of Peel the number went down to 897, in the city of York, the number went down to 1,059, the city of Durham, the numbers went down to 710. The biggest drop in the amount of housing resale listings is the city of Toronto which saw a massive drop from 5,070 to 2,298.
The housing imbalance in Toronto is bringing fear of a crash which may most likely lead to a recession in the Canadian housing market and Canadian economy. By the looks of things the Canadian economy is not ready for a recession.