Toronto’s real estate market and the Homebuyers

The Greater Toronto Area has entered a housing bubble that it won’t be coming out of for a while now. Evidence of this is the average price for a detached house in the city of Toronto. The average price for a detached house in the city of Toronto went up to an amount of about $1.2 million last month, February. This new price is an increase of about 32 per cent within just a year which had just 366 days. Politicians in Canada and most Canadians are frightened and most of them still remember the 1989 housing bubble and how it affected the real estate market of Canada and the economy of Canada as well.

Most politicians in Canada are recommending that the real estate housing market should put up lending rules that are extremely tight, taxes on purchasement of foreign buyers, subsidies for more affordable homes etc.

Canada and it’s government faces fear that a housing shock –which could occur at any moment- could send the Canadian real estate market and the Canadian economy into a deep recession like that of 1989 or even worse.

For most home-buyers in the city of Toronto, their minds are full of insecurity as to whether they should buy or rent a house. This insecurity is mostly due to the fact that the prices in the province of Ontario and most especially in the city of Toronto have skyrocketed out of balance. Most tenants in Toronto compare the price for renting a starter home and then decide to enter the game of the real estate market. This does not benefit them at all but they fail to realize it at first.