Toronto Home Prices Rise in October as Listings Plunge 18.8%

Posted on Posted in Liberty Village
What explains this new frothiness in the G.T.A real estate market?
Is it as simple as diminished supply versus an insatiable demand?
Can it be attributed to purchasers becoming acclimatized to the federal government’s 2017 stress test?
The 15% drop in value of Terra Firma properties through 2107/18. Some semi suburban pockets experienced greater percentage pull-backs.
The rising demand due to the appeal of Ontario’s tech center, provincial & cultural capital.
The hypothesis that limited supply could be a partial by-product of restrictive zoning policies.
Maybe the sky-high cost of land & municipal development charges has diminished the appetite of smaller infill builders (i.e. >$50,000 per front foot) – Who once upon a time were the backbone of the residential housing sector.
Perhaps the real consequences of the rabid refinancing enjoyed by many over the last decade, has deprived many of tangible home equity. Your home is not an ATM!
Could the often long & costly delays associated with the approval process retard supply?
The North American cultural obsession with home ownership begets a generational demand, often fueled for the first 10 years by zero percent family loans.
Reflectively, the G.T.A  real estate market remains an enigma. Much we believe can be attributed to the abandonment of classical economics. Whoever imagined that things like, quantitative easing, negative interest rates, full employment & stagnant wages being with us for more than a decade?!
Keep in mind that these are very sweet financial candies. Removing these bon-bons will be difficult and ultimately painful.
Please contact us if you have any additional questions or leave a comment below, and check out the following links “Ray Dalio says the world has gone mad with so much free money.”

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