MARKET CONDITIONS
I do not have, and never have had a crystal ball.
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All traditional real estate market models have been rendered useless by Covid-19. The situation is complicated and very fluid, but some things are clear.
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Interests rates were historically low, but are now increasing, and will continue to rise for the foreseeable future. So money maybe still be cheap to borrow, but that is changing. Low rates translated to higher prices; higher rates will change that. Demand will seize-up and prices will drop in the short term.
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The stock of single family houses is very limited and will remain so. Demand will always be there. Families and more established home owners are not relocating to the suburbs, but will instead invest in their properties through renovations and additions. Some will capitalize on the market downturn and buy addition properties for investment or family. As in all previous real estate "corrections", the market will rebound and prices will reach historic highs again . . . it just takes a couple/few years.
Currently the condo re-sale market is in flux. People are flocking back into the city, and that is driving rents up to new heights. Tourism is also increasing and there is a renewed demand for short-term rentals. Developers are delaying new projects, and material costs for building are skyrocketing. Yes, there is a price correction in condo properties at this point, BUT that will not last. Simple laws of demand and supply will dictate a sharp increase in the medium and long term.
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Toronto is a very livable city. It is the fourth largest city in North America with the third largest financial sector and it embraces all cultures and beliefs as proven by its increasing immigrant population. It is a major metropolis that is growing in size and stature and Toronto is a world-class city with comparatively under-valued real estate. Homes are a bargain for the international buyer and those with deep pocket books.
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In the short term, I foresee a continued price dip. In the long term, I see sharp rebound and increases in value across the board.
This is perfect storm for some. Higher interest rates and lower demand is bad news for seller; but great news for buyers. In time, the market will stabilize, prices will eclipse previous highs and it will be a return to good times for those owning property.