Toronto Real Estate Market Booms Despite Tight Inventory Levels and Lack of Affordability

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The real estate market in Toronto is seeing a surge in activity across all property types and price points, with some properties achieving prices comparable to those seen in the peak of the market back in February 2022. However, this frenzied activity is also being driven by the tightest inventory levels in decades, with affordability being secondary to buyer motivation. Many older clients are considering capitalizing on their windfall of equity and downsizing into condos, with the possibility of selling to other move-up buyers waiting in the wings. However, even if enough older homeowners cycle out of the market, it's unlikely to affect average sale prices, which are being propped up by insufficient inventory rather than interest rates. The lack of housing being built by municipal and federal governments is exacerbating the issue, and a slight drop in interest rates may lead to the cycle starting all over again, which will be terrible news for Canadians priced out of housing.

Overall, the current state of affairs in the Toronto real estate market is being fueled by tight inventory levels and a lack of affordable housing, with many older homeowners considering downsizing and selling to move-up buyers waiting in the wings. However, the lack of housing being built and a possible drop in interest rates may lead to the cycle starting all over again, with little hope of improving the affordability issue in the foreseeable future.

Read the full article on: TORONTO SUN