Posted 11.27.14 @ 5:0
Planning on selling or buying a home soon? Then you should read this article. Last month, we posted about how sales for houses and condos in the Greater Toronto Area are on a record high, and now it seems that this trend is to continue for the next few years.
Some may fear or worry that being able to sell a home for a profitable price may end soon. Well, fret not; talk during the recent Toronto Housing Outlook Conference which was hosted and facilitated by the Canada Mortgage and Housing Corporation just a few days ago at the Metro Convention Centre says that there is nothing to worry about. Ted Tsiakopoulos, CMHC’s regional economist says that the trends do not indicate any slowing down or running out of opportunities to sell in the near future, which is good news for current homeowners and prospective home buyers alike.
On the conference, the group estimates that the average housing prices for Toronto would keep on increasing well into 2016, which would bring it closer to $600,000. This figure does not mean that people may have a problem purchasing homes due to overvaluation. On the contrary, Bob Dugan, CMHC’s chief economist, says that the estimated figure would not be outstripping demand and that overvaluation is not something that they worry about.
How About the Long Run?
Although the trend may continue for a few years, long-term forecast is not as clear according to Dugan. Compared to other western nationalities, Canadians have high levels of household debt in relation to their income, with as much as 70 percent of debt connected to residential mortgages. It is to be noted though that during the 2008 recession, the same figure plummeted across the U.S. and Britain. This can mean that an event which can deliver a blow to the economy may trigger a mass housing selloff in the future. As Dugan says, debt to income ratio is a vulnerability that Canadians have to be concerned about.
Back to the Present
At present time, there is a shortage of listings for homes and condos in the Greater Toronto Area, with houses and condos selling at an average of 7 to 11 percent higher than their estimated value. This may be related to an increase in demand as Canada bagged 3 top places in the list of the best livable cities of the world, with Toronto securing a place in the top 5 no less!
In the mood to sell your home or looking for a beautiful luxury home here in Oakville? Contact us and let us help you find all the best deals! Oakville has a great choice of real estate in all of its neighbourhoods for those who want to purchase a new home. As for those who want to sell, let our expertise guide and help you! Our roster of real estate agents has a solid track-record for churning out the best deals for home sellers and buyers alike. Give us a call to know more!