Is Toronto in a housing bubble?

by Gerv Tacadena25 Feb 2020

Around four in five Canadians in Toronto perceive the city to be in a housing bubble, according to the latest study by Zillow and Ipsos.

Eighty percent of Canadians living in Toronto think the city has inflated housing prices and is at risk for a correction. Due to this reason, 77% of buyers doubt their ability to own a home.

Canadians in Toronto cited several barriers to homeownership, the biggest of which is coming up with a down payment. Other challenges include high mortgage repayments, home-loan qualifications, debt, and lack of job security.

Despite these challenges, the majority of Canadians in Toronto still believe homeownership is a good investment. In fact, the proportion of city residents who still think homeownership as a viable investment rose from 79% in 2018 to 83%.

Toronto's house prices are expected to remain on an uptrend due to a supply crunch. According to the Toronto Regional Real Estate Board (TRREB), the average selling price in Toronto is forecast to increase by 10% to $900,000 this year.

"The end result will be an acceleration in price growth over the next year, as an increasing number of homebuyers compete for a pool of listings that could be the same size or smaller than in 2019," TRREB said.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?