All the laws of Newtonian physics suggest that a thing simply can’t go up and up forever. And yet, Toronto’s real-estate market seems to exist in a universe where “down” isn’t even a concept. Everything goes up—the buildings, the prices, the population—and it can start to seem as though there’s no other way. It can’t always be like this, but, for now, the numbers indicate that things will remain as they are. Here, four reasons Toronto’s real estate is safe—for the moment.
1. Home prices are up, year over year
According to numbers from the Toronto Real Estate Board, there was no point during 2013 when Toronto home prices weren’t higher than they were during the same period in 2012. What’s more, the end of the year was particularly strong. In December, average sale prices were up 8.9 per cent over 2012. TREB expects average prices to continue to rise in 2014, faster than the rate of inflation, in part because city’s inventory of available low-rise housing is still considered low. In other words, supply shows no signs of catching up with demand.
Read the rest of this entry »