“I think a lot of people are questioning some of the pricing, but I think the reality is that people are willing to pay,” said Mark McLean, a broker in Toronto
“In a lot of ways we’re hamstrung by the greenbelt, so Toronto
– downtown Toronto living – is becoming priced at a premium and I don’t see that going away anytime soon.”
McLean’s sentiments come on the heels of another report claiming Canada’s housing market is overvalued. The U.K.-based The Economist
compared housing prices to rents and incomes to determine that the country’s market is 38 per cent overvalued.
However, this report – much like those before it – appears to ignore such factors as astronomical demand in markets such as Toronto
Speaking specifically to the International Monetary Fund’s report earlier this year, Ben Myers, the senior vice president of market research and analytics for Fortress Real Developments, said the real estate industry should, for the most part, ignore doom and gloom coming from analysts well removed from the vagaries of the Canadian economy.
“To try to distill an entire market down to two numbers, then on top of that to divide one number by the other, divide flawed data by flawed data will just increase the ‘misleadingness’ of the data,” he said.
Myers added that it’s important for homebuyers to trust the experts on the ground. And, as McLean said, those experts don’t appear to be concerned.
“What I’m hearing – I have 60 agents who work in our office – I think they’re not placing any cadence in that stuff,” McLean added. “They’re going about their business. We have to adapt to the market.”
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Yet another group of analysts are calling Canada’s housing market overvalued – this time by 38 per cent – which begs the question: should investors be concerned?