Is Toronto in a housing bubble?

  2/26/2020 |   SHARE
Posted in Toronto Real Estate by Sam Cuda & Nancy Cuda | Back to Main Blog Page

Toronto Panorama

Around four in five Canadians in Toronto perceive the city to be in a housing bubble, according to the latest study by Zillow and Ipsos.

Eighty percent of Canadians living in Toronto think the city has inflated housing prices and is at risk for a correction. Due to this reason, 77% of buyers doubt their ability to own a home.

Canadians in Toronto cited several barriers to homeownership, the biggest of which is coming up with a down payment. Other challenges include high mortgage repayments, home-loan qualifications, debt, and lack of job security.

Despite these challenges, the majority of Canadians in Toronto still believe homeownership is a good investment. In fact, the proportion of city residents who still think homeownership as a viable investment rose from 79% in 2018 to 83%.

Toronto's house prices are expected to remain on an uptrend due to a supply crunch. According to the Toronto Regional Real Estate Board (TRREB), the average selling price in Toronto is forecast to increase by 10% to $900,000 this year.

"The end result will be an acceleration in price growth over the next year, as an increasing number of homebuyers compete for a pool of listings that could be the same size or smaller than in 2019," TRREB said.



Real Estate Bubble, Toronto Living, Toronto Real Estate, Toronto Real Estate Prices



Ask Sam Cuda & Nancy Cuda

Thinking of buying or selling a property, or have a question regarding the real estate market? Fill out the form below and we'll get back to you promptly.

Security Question: 1 + 1 =