Preferred Clients

A research study by BMO senior economist Robert Kavcic suggests that the GTA housing market will be overvalued in the next two years. Overvaluation occurs when an asset has too high a price that is not justified by its intrinsic economic value. In financial theory, it is recommended to sell these assets before their prices are corrected. Much like in 1989, this is the scenario that is being projected by Kavcic.

 

 

Reselling real estate within a short period of time (home flipping) and strong population growth have driven real estate prices upward. Kavcic illustrates that the allocation of income from GTA residents to mortgage payments has been growing steadily in the last few years. TD reports as well that the GTA is growing by 100,000 people annually, outnumbering supply for residential homes. Four cities in the Golden Horseshoe — Toronto, Mississauga, Brampton and Hamilton — are ranked among the top 10 largest Canadian cities.

 

However, Mark Renzoni, president of global commercial real estate giant CBRE, believes that concerns over speculation are overblown. Renzoni argues that much of the healthy growth of the Toronto housing market is driven by first-time buyers. The strength of the job market and an environment of low interest rates have favoured conditions for a Toronto real estate boom.

 

Renzoni also states that much of the foreign interest in Toronto’s housing market is in condos. Motives for buying include getting close to relatives or setting up a place for university students to live. It is Renzoni’s belief that the market is fairly priced and is comparable to that of other world cities such as New York, Hong Kong or London.

Terms and Conditions REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA's By-Laws, Rules, and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.

The information contained on this site is based in whole or in part on information that is provided by members of The Canadian Real Estate Association, who are responsible for its accuracy. CREA reproduces and distributes this information as a service for its members and assumes no responsibility for its accuracy.

This website is operated by a brokerage or salesperson who is a member of The Canadian Real Estate Association.

The listing content on this website is protected by copyright and other laws, and is intended solely for the private, non-commercial use by individuals. Any other reproduction, distribution or use of the content, in whole or in part, is specifically forbidden. The prohibited uses include commercial use, "screen scraping", "database scraping", and any other activity intended to collect, store, reorganize or manipulate data on the pages produced by or displayed on this website.

Preferred Client password reminder

Enter the e-mail address you registered with and we will e-mail your password to you.

Your password reminder has been sent

You should receive your password reminder in a few minutes.

Please check your e-mail before attempting to log in to your account.

Thank you,

Royal LePage Your Community Realty, Brokerage

Mortgage calculator

Disclaimer

Please be aware that these are for indicative purposes only and will offer approximate values.

Land transfer tax

Disclaimer

Please be aware that these are for indicative purposes only and will offer approximate values.

What's my home worth?

Getting ready to sell your home?
Learn its true value quickly and for free!

Tell us about your home

Tell us about yourself

Thank you for your submission

Your request has been successfully submitted. We will review your property information and e-mail your personal home valuation report as soon as possible.

Thank you,

Royal LePage Your Community Realty, Brokerage

Find my dream home

Trouble finding your dream home? Let us know where you want to live and we'll find it for you!

Tell us what you are looking for

$0
Any

Tell us about yourself

Thank you for your submission

Your request has been successfully submitted. We will review your property information and e-mail you a selection of homes that meet your critera as soon as possible.

Thank you,

Royal LePage Your Community Realty, Brokerage

Mortgage pre-approval

Ready to buy your next home?
Receive a personal mortgage report for free!

Tell us about yourself

Thank you for your submission

Your request has been successfully submitted. We will contact you as soon as possible and set up a meeting with one of our financial partners at your earliest convenience.

Thank you,

Royal LePage Your Community Realty, Brokerage

Request more information

Thank you for your submission

Your request has been successfully submitted. We will contact you as soon as possible with more information about this property.

Thank you,

Royal LePage Your Community Realty, Brokerage

Book a viewing

Thank you for your submission

Your request has been successfully submitted. We will contact you as soon as possible and set up a viewing at your earliest convenience.

Thank you,

Royal LePage Your Community Realty, Brokerage

Oops!

You need to correct the following issues before you can submit your request.

Preferred Clients