Every year around this time since being in the business (for now ten years plus), we are forced to confront the media's claims that the GTA's housing market "bubble" will surely burst this year. Well, we're here to say it won't. And the following top five reasons are testaments to this fact.
After the Greater Toronto Area's record year in 2015 for both the number of homes sold and the average price, the question is: when will it all come crashing down? The answer: not in 2016. Here are five reasons why this won't be the year of Toronto's housing collapse.
1. Supply and Demand
It's the simplest rule of market economics and it applies to Toronto's real-estate market. The population keeps growing, and people have to live somewhere.
There's little room to build more single-family houses to increase the supply. The demand from families who want to live in the city with a patch of grass remains huge. The number of new listings on the market continues to be outstripped by the number of buyers.