Toronto’s detached house prices make comeback – July 12, 2018
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Not sure where these false reports came from in the first place, but the detached housing market in Toronto has never been in trouble, even in the event of a crash, the detached housing market will be the first to recover. Toronto is Canada’s most populous city when people think Canada the first city that comes to their minds s Toronto.
The problem with Toronto is its condo market, the Toronto condo market is a disaster waiting to happen because the fundamentals of the Toronto condo market aren’t based on demand. The condo market in Toronto revolves around speculators, furthermore, a vast majority of the condos built in Toronto were not built with families in mind, most of these condos were built for real estate investors.
In Hong Kong the one area the government chooses not to leave to the free market was the real estate sector, some argue this was intentional based on national security concerns. Although Hong Kong is considered part of China, it didn’t start off that way. I saw this because of Toronto allowing itself to be open to real estate speculators many who have politicians in their back pockets.
If you read most reports, they seem to put condos and detached homes in the same category, but they’re not, there’s an actual demand for Toronto detached homes, it’s a real demand, sure speculation exists but the reality is homes aren’t being built in Toronto, Condos are being built, which in turn is causing the detached housing market prices to go up. In regards to Condos, do yourself a favor and search google for “condos for rent” it might take you some time to find out what’s going on, because in many instances people renting out their condos try to stay hidden, which creates artificial demand and/or they try to appeal to the desperate or the oblivious, but there’s an abundance of empty condos all over the GTA.
There are so many empty condos in Toronto in fact that the only real question to ask is why are rent prices so high? The answer to rent prices being so high in Toronto is because no developer/builder in his or her right mind is going to build a rent-controlled apartment building when they could build a condo and pass all the risk over to a real estate investor. The economic makeup of Canada in general favors building condos over apartment buildings and the beautiful thing about owning a condo is that you don’t have to rent it out if you don’t want too, you can hold and flip or hold and create demand which raises rents for everybody.
This is what happens, this is a government disaster and only an economic crash or exodus of the GTA can stop it.
It’s unlikely that any politician is going to let the market control what house or apartment building or condo should be built in Toronto. So this will just be a slow decline and by slow it could take 30+ years before the infrastructure of the city simply falls apart. If the market dictated the condo market in Toronto, the condo units would be much larger, there would be condos units that mostly had 2 floors, the condos would be built for families and not built to mimic apartment buildings with washer/dryers. The Condo market in Toronto is headed for a world of problems in the coming years. The detached market, in my opinion, should be fine unless people simply start leaving Toronto.
Interesting times ahead.
