Over the past year there’s been a lot of doom and gloom in the press about a potential over valuation of housing and an impending bubble in the Toronto Real Estate market.
Amid a torrent of calls for calamity in the Toronto Real Estate Market, we’ve actually
seen a seasonally adjusted price increase on average of 4.9% (BMO). It’s not a great result, but having some real estate in your portfolio of investments has always been a prudent way to help balance your portfolio.
So, I think that we are looking towards another good year for 2014 with another moderate increase in price in Toronto. Here’s what I think some of the main factors are…
- Continual high levels of migration to Toronto, about 100,000 people a year
- Every year more and more jobs are being created in Toronto
- The cost of borrowing money (and mortgages) is still at historical lows
- Original condo boom buyers will outgrow their condos and will move up to a house