Drivers and Indicators and Operational Implications and Decisions

Real Estate Market Analysis
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Real Estate Market Analysis
Drivers and Indicators
Reply to Emma Fody
Your post about Toronto’s residential property market is fascinating. I agree with you that the price of houses in this city will continue to rise for the next year. In reality, many homeowners in Toronto are not selling their houses. One of the reasons why people are keeping their old homes is to avoid the huge tax burden on property transfer and the high mortgage interest rate. On that note, many individuals are renovating their homes since it is the cheapest way. However, I wonder why many investors are not taking advantage of the increasing population in Toronto to build new homes. The construction activities in the region have reduced tremendously. By going through your thread, you have made it clear that Toronto residents or anyone who is planning to migrate to this city must be ready to pay more to own a home.
Reply to Mathieu Fife
Thank you for elaborating on Emma’s points to make it clear why the costs of houses in Toronto are likely to continue increasing in the next year. Being an Ontarian, I understand that you are aware of many things, which have significantly contributed to the increasing costs of residential properties in Toronto. Besides, Toronto is the capital city of the province of Ontario. The most significant thing that affects the prices of homes in the city is the economic underperformance. For example, you say that Ontarians continue to accumulate debts, which makes it hard for them to get a mortgage. In reality, without your contributions as an insider, it would have been difficult to know some of the factors that make individuals not to purchase houses. Overall, unless the government intervenes to reverse the increasing costs of residential properties, many people in the region will not be able to own homes.
Operational Implications and Decisions
The average price of residential property in Toronto is likely to increase in 12 months to come. Lalaine Delmendo (2019) asserts that the prices of houses in Canada’s major cities increased by 2.51% in 2018, where 0.51% was the inflation adjustment. In particular, the costs of residential properties rose by 3.72% in Toronto (Delmendo, 2019). Even after the central bank took action to decrease the amortization period and raising the requirements of the mortgage downpayment, many people cannot afford to buy homes in Toronto. For the last decade, the construction activities in Toronto have been reducing, which means that not many individuals are building new houses. The current trend in housing in Toronto depicts that no significant changes in the prices of residential homes will occur in the next twelve months. As such, residents of this city might be required to pay more for rentals.
The prices of products and services are controlled by supply and demand. By analyzing the residential housing market in Toronto, it is clear that many people are not selling or building new houses in the region. In most cases, individuals sell their properties when they are migrating to...