Home buyers and home sellers are twiddling their thumbs and ripping out their hair in exasperated anticipation of the market in 2017. Prior real estate predictions are nothing more than tarot card readings outside of a gas station at this critical point in economic times. Toronto, Canada, has managed to survive this unstable and bumpy housing market, but who knows what the future will bring. Debt, mortgages, and the unemployment rate are all things that need to be considered where housing is concerned.
Toronto is experiencing insane highs for consumer debt, which makes people less inclined to buy new homes. That being said, the rates for mortgages are the lowest they’ve been in ages. There has never been a better time to take out a mortgage for a new home. These things seem to cancel each other out, leaving only the concern about employment as a deciding factor. The problem is, according to the popular predictions for the unemployment rate, the amount of people with jobs as well as the amount of people without jobs is going to stagnate. With no upwards mobility, one might assume the housing market will remain stoic and unmoving as well. Although, without the threat of an impending downhill crash, it could be safe to take risks and benefit the housing aspect of the economy. The Toronto real estate could be fairly healthy for years into the future.
The variables are just too dependent upon one another for anyone to make a good guess. The rise in prices and increase in cost of living expenses could potentially cause the entire market economy in Toronto to collapse, but no one can say for sure how the government will respond to the demands of the populace. Similar to cities such as San Francisco and Chicago in the United States, the gentrification of neighborhoods and consequential increase in expenses like rent will rest in the hands of the government. Prices will only continue to escalate if nothing gets done about this situation, and the artificial inflation due to a presumed and logically faulty land crisis is only going to damage the economy.
The demand for affordable places to live in the greater Toronto area is hurting the environment, the economy, and the displaced residents. Presumably, if this sort of behavior continues and is permitted by the government, the housing market could very well crash abruptly and horrendously.