Toronto’s real estate market is generally led by sound fundamentals rather than irrational speculation, as has been demonstrated. However, many are concerned that the price increases could lead to a crash.
Dallas-Fort Worth and Toronto are at the same level of speed when it comes to an increase in population, and it shows no sign of stopping. However, there will be a supply-demand imbalance prevailing in the city. The result will be an increase in housing prices, but shouldn’t a cap be in place?
In general, especially after the effects of the pandemic, people are spending that money on improving their existing homes and staying put. As a result, the supply and demand imbalance is increasing prices.
However, the underlying fundamentals of Toronto’s housing market are not compromised, which may explain why Toronto’s prices are exorbitant. To collapse Toronto’s housing market, several scenarios would have to occur simultaneously, which could be very unlikely.
Prices in the GTA are expected to remain strong and high, despite some overpricing. The market hasn’t crashed, so there is something fundamental going on. The last 15 years would have been fraught with concern if there had been a bubble. Despite the fact that the skyrocketing prices are causing great strain, several market participants believe that this market is well-supported.