Though Toronto has witnessed few slow weeks, an analysis thoroughly taken reveals the market of Toronto still holds strong grounds. A lot of articles related to the slowdown of Toronto’s housing markets have been published and there a lot of predictions of a crash because some assert that a few slow weeks are signs of a larger problem. A thorough analysis reveal the strength of Toronto’s market and these few reasons are beliefs held as to why Toronto’s market is still strong.
- 1. Nothing has changed for majority of home owners.
A plan launched on April 20th gave 16 strategies to make home sales and rentals balanced between sellers and buyers but none of the strategies is expected to have an effect on the majority to today’s home buyers, and that is residents of Toronto buying homes to reside in while other factors remain the same. In a short time, both buyers and sellers will realize that their situation hasn’t changed with the April 20th rule and they will all resume activities that they used to before the implementation.
- 2. Supply and Demands have not changed.
This factor tops with its importance as the whole situation of skyrocketing of prices was due to lack of supply and intensity of demand. The Ontario Fair Housing Plan doesn’t entail an increase in supply but entails factors that will increase supply which can finally be achieved in several years and can’t be an adequate supply to balance the market as Toronto is ranked as one of the top cities in the world for residence. The demand for real estate will be high because every year, the number of people moving into the city increase and these numbers are expected to rise.
- 3. The situation of Vancouver.
The set of laws that were implemented last year August including the 15 per cent tax on foreign buyers really affected Vancouver as prices dropped by up to 5 per cent, just five months after the implementation. But now that it is 10 months after the implementation, the market is back to being active as it was before the implementation. Vancouver is the best market to be used in comparison to Toronto and Vancouver, as they survived the effects of the tax increase. It is safe to conclude that what Toronto is currently facing is also a short term experience.