Sharing our broker, Alex Pilarki’s thoughts on the real estate market…
“There are so many crazy stories about real estate these days; houses selling above asking price, multiple offers and new condominiums selling out overnight. It is no wonder people get confused and concerned about the future of the real estate market. The fact is that real estate is much in demand, but for good reason. Let me review some of those reasons for you.
First and foremost, let’s remember this is Canada! With so much turmoil around the world, Syria, Africa, Asia, the economic woes of Europe, Canada stands as a safe refuge from war, famine and religious persecution. Our doors are open to new immigrants, and up to 300,000 per year are settling in Canada with the majority in Ontario. Those immigrants with money to invest in real estate and business endeavours are preferred by Canadian Immigration Services, and thus real estate comes under greater demand as new immigrants often buy where previous generations would have rented.
Secondly, our economy is very strong with many jobs and opportunities. As Toronto and the GTA have grown in population, services, restaurants and stores have expanded to meet the new demand.
Third, our interest rates are at all time lows, making homeownership more affordable than ever before.
The fourth factor is supply. Immigration is outstripping new construction efforts, and builders cannot build fast enough to supply the demand. The supply is tighter still as very few rental units have been constructed since the 1970’s. Houses and condominiums are being used to generate rental income and are taken out of the supply inventory for those interested in purchasing. Combined with the fact that the GTA is limited in growth south due to the lake or north due to the Oak Ridges Moraine, you can now appreciate why supply is at all time low.”