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Will Toronto's housing market go up or down in the next 12 months? Please give your reasons.
Personally, I see two main driving forces moving in opposite directions which more or less cancels out, thus leaving the market relatively stagnant.
Firstly, with the economy in shambles, the real estate market should suffer as well. Expect to see increase of mortgage defaults, people downsizing their home, and the trend of working from home allowing people to move out of Toronto's core. All this portends to more sellers than buyers leading to a slump in average home prices.
On the other hand, with excess liquidity due to federal government desperate to prop up the economy, quantitative easing, too much hot money driving equities markets to insanely overpriced levels, and near zero rates on money markets, it seems there just isn't many safe places to invest our money. In times like these, real estate is a safe conservative choice (if you are risk taker you can speculate on gold or Bitcoin). So we can see increased investment into Toronto's real estate sector driving up prices.
Based on these 2 factors, I foresee the housing market staying relatively stable in the foreseeable future.
Lets hear your thoughts!
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发表于 2020-8-4 19:57:51
