Have Toronto housing prices peaked?
- Thread starter Bored2022
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Hard to say. Keep in mind, the Bank of Canada is rating rates, so that will put a chilling effect on how much leverage people can use to buy properties. There is a good chance we'll either see a correction, or, at the very least, prices staying flat for a while.
We also don't know what the government might do to help generate affordable housing. Would they block foreign ownership, which could suck a lot of money out of the market and cause prices to dip? Would they impose new taxes that would make flipping homes painful?
Every realtor I know still projects higher prices, but who knows. If the BOC raises rates to 4%, there are a number of people who will be crushed by their mortgage payments, and could be forced to sell. More sellers and not enough buyers = lower prices.
We also don't know what the government might do to help generate affordable housing. Would they block foreign ownership, which could suck a lot of money out of the market and cause prices to dip? Would they impose new taxes that would make flipping homes painful?
Every realtor I know still projects higher prices, but who knows. If the BOC raises rates to 4%, there are a number of people who will be crushed by their mortgage payments, and could be forced to sell. More sellers and not enough buyers = lower prices.
I think we are near the peak or at the peak of housing prices. After two years of world crisis we would be very lucky if the world economy recovers to pre pandemic levels in five years. I suspect that it will take ten to fifteen years before the world economy stabilizes. Even then we will be in a new world. There will be less people employed and employment will be different in the future. There will be more work from home and part time or free lance/contracted work. Individual and household incomes will stagnate or fall. With future incomes stagnant there will be less people able to afford to buy houses.
I don’t believe price’s have peaked as in history houses / land grow in value over time - there may be short term peaks and valleys. If you compared GTA prices a few years ago to any other major North American city (absent of Montreal) - Toronto was still cheap. Even at this new price level - compare to LA , Chicago, NY, Vancouver, Miami and we are still cheaper.
We need to get back to pre pandemic immigration levels - continue grow this Country - hopefully spread out to more than just the 49th parallel. We need trades, we need professionals etc.
What the Government needs to do regarding housing is to stop these assignment deals at new developments and also apply a much heavier tax on none occupied or property taxes should be at least doubled for “non resident” ownership - example Florida has that - hey you want a winter home here non-Florida person - pay double the property tax. But these assignment deals have to stop - way too much hidden cash being handed around.
We need to get back to pre pandemic immigration levels - continue grow this Country - hopefully spread out to more than just the 49th parallel. We need trades, we need professionals etc.
What the Government needs to do regarding housing is to stop these assignment deals at new developments and also apply a much heavier tax on none occupied or property taxes should be at least doubled for “non resident” ownership - example Florida has that - hey you want a winter home here non-Florida person - pay double the property tax. But these assignment deals have to stop - way too much hidden cash being handed around.
I be shocked that they don't break 10 million and I more expect 25 million plus.
Yes, ridiculous but I called it for 100 k 800 k 1 m and now 2 m. So far Im 4 out of 5 and 5 pending.
Reasons
1) Millions of immigrants coming: recently all Ukraine where granted homes here if they can get here and want to come here. There will be others
2) World collapse , Canada is the lifeboat for Oligarchs everywhere.
3) Global warming - Canada climate is becoming better while tropical islands sink below the waves
4) An economy that based on keeping housing prices high. It one of our few exports.
5) Mass inflation. With food doubling or tripling all prices across the board will eventually double or triple so that 2 to up to 6 million just from inflation, excluding demand.
Drakes house went up quite a bit.
As for people buying houses: no normal person is buying these houses , see New York during the 80s. Toronto part of the global system now.
Oh sorry I was wrong about hte pandemic, I though houses would go down during the pandemic but forgot about the global issues.
Bro WTH are you doing? This was supposed to be kept downlow and keep letting the clowns think the housing condo market will crash for the past 20+ years. Delete this before anyone sees
Peaked? There is still a lot of immigrants flowing to Canada...For any 3rd world country...Canada is the mecca of making it...not the US anymore...Too much land per populace ratio....a townhouse in my neighborhood just sold over asking...listed at $799k...anybody sitting on a freehold property right now has tripled and eventually x4 the value of their property...
Ya I agree. If housing went up during the Pandemic (when it should have crashed) it will take a nuclear war or some such to crash the Toronto market. As long as immigrants keep coming to drive taxis while they remember there doctoring days housing will rise.
I say there's a lot more upside to go . In my area I have seen the first 4/5 million dollar listings in ages. My next door neighbour's house is worth approx
$ 1,750,000 , he got 2.3. Yikes ! At one time I thought those MLS stories of couples who got $ 400 to 500k over listing were bogus. Not !
$ 1,750,000 , he got 2.3. Yikes ! At one time I thought those MLS stories of couples who got $ 400 to 500k over listing were bogus. Not !
That being said there will be crash eventually. Toronto unlivable for transit, the shops are all gone - following the New York cycle there be a massive crime wave, buring down of homes and then the rise of the gated communities. We can expect a murder rate doubling in the tuture as normal people will be homeless.
Like the market experts always say : "There's always a dump after a pump, and a pump after the dump" ! 
I read that while the Neptis Fountation states there is lots of land to develop in the GTHA, they include protected areas such as wetlands and ravines and cemetaries, as well as land intended for business use and — counting for nearly a quarter of the total — residential land that’s already making its way through the planning process. Not sure who to believe.
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Of course. it is just 4.1% per year. Below the current conflation level. $3M in 10 years is a very moderate growth level
Things are going to get really bad in Canada.
Real estate is cyclical however the global and domestic response to covid has put in motion an economic crisis that hasn't been seen in our lifetimes.
Real estate is cyclical however the global and domestic response to covid has put in motion an economic crisis that hasn't been seen in our lifetimes.
Prices are decreasing in many areas in Ontario. But have they hit their peak. Nope, not even close
