Categorized | International

Toronto Market Continues to Post Large Gains

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The Toronto residential real estate market continues to be Canada’s strongest performer. However, economists fear that the market will not be able to sustain its growth, and may even crash in the somewhat near future.

 

The majority of Canada has gone through a bit of price correction in the past few months, as residential real estate prices have fallen in just about every Canadian city and province. Toronto, however, has been the exception.

 

In the last year, residential real estate prices have increased by more than ten percent in Toronto. That is more than seven percent higher than any other Canadian city.  In fact, prices across the nation actually fell during the month of March.

 

Economists believe that the residential real estate market will fall by just over three and a half percent next year, and just over four percent in 2014. As such, it will be some time before the Canadian housing market shows signs of growth. The drop in pricing is not overly disconcerting, as many economists believed that the Canadian market had become overinflated, and was in need of a correction in pricing.

 

The residential real estate market of Toronto, however, has been the subject of great concern among analysts and economists. While the market is currently thriving, many fear that it is growing at an out-of-control rate. Prices continue to soar in the city, as consumers hotly pursue the single-family home and condominium markets.

 

The increased interest in condominiums has spurred an unprecedented amount of new condo construction. Many are starting to wonder if there will be enough buyers to purchase the vast oversupply of new properties. If not, believe that the oversupply could cause a massive decline in pricing.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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