Recent real estate data shows that property prices are going off the roof. In the last one year, house prices have gone up by 33.2%. If you do not already own a house in Toronto, it will cost you more to buy now. But why is this happening?
Do you want to know the real reason house prices in Toronto are soaring? Keep reading and you will…
Foreigner’s buying force
There is a speculation going around that foreign buyers are driving the prices in Toronto. They have flocked the market with countless of dollars ready to invest. The market has reacted to the surge in foreign buyers by pushing the prices above normal. Toronto authorities are thinking of including special tax for foreigners buying homes just like Vancouver is already doing.
Stringent supply of houses
The current supply of houses in Toronto is not anywhere near the demand force. As it is custom when supply is low, and demand is high prices shoot through the ceiling. The Canadian government has put a limitation on where new houses can be built to prevent the green belt. This has, in turn, killed the supply of houses hence the high prices.
Immigration has had its say
Many of the immigrants to Ontario have spilled into Toronto. There many newcomers in Toronto from other Canadian provinces and other countries. This has further pushed the demand for houses. With some of these newcomers coming from areas where houses are very expensive, they can surely afford the prices in Toronto.
Speculation for continued growth
It is not only the forces of demand and supply that are pushing prices in Toronto. Speculation has had its say in the affairs. With Toronto property market expected to keep growing in double-digit for the foreseeable future, many people are buying houses. Interestingly, they are not buying a house to live in; they want to sell them after appreciation. With such a scenario, you expect the prices to go even higher.
Toronto offers one of the lowest interest rates
It is very easy to get a mortgage in Toronto. And you know what is even better? Interest rate as low as it can get. With this ease of borrowing and low interests, many people are ready to buy homes. The demand is getting high by the day. With interest rates did not seem to get high in the future, you expect the market to be flooded with house demands with a trickling supply.
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Toronto has good things to offer
Toronto has one some of the finest social services. Health and fitness facilities are in plenty, and this would explain why it would cost you much to buy a house here.
Now you know why Toronto houses are not your average choice. They are going for very high prices. How this will be no one can tell. As long as the factors driving the prices remain favorable, then the double-digit price appreciation is going to be around for a long time. It could be the right market to invest in; you can get good appreciation in a matter of a year.