WILL HOUSE PRICES IN THE GREATER TORONTO AREA (GTA) DROP IN 2022?
Wednesday Oct 13th, 2021
The real estate market in Canada, especially in the Greater Toronto Area, has always been a good place to invest. Numerous people have made a significant fortune by purchasing residential or commercial property and using it as a source of rental income. It is commonly believed that the market is stable and safe to put one’s bet on. However, the most important lesson that the pandemic taught is that nothing is the same as before. While we are adjusting to the new normal, in almost every aspect of life, we also have to consider the changes in the real estate market.
After extensive research, evaluations, and predictive statistics, experts believe that house prices will definitely dip in the next fiscal year, i.e., 2022. Let’s analyze what the trend has been over the past few years. Over the past few decades, the prices of housing in GTA have increased consistently. This has had a direct influence on the rental prices, and they have spiked significantly. Surprisingly even in the year 2021, when most other industries suffered massive financial blows, the housing real estate in GTA has continued to boom. This has made the prospect of buying a new home close to impossible for many young families and individuals who have just started out in their respective careers.
As expected, when the prices of a certain market exponentially increase over decades, they are bound to peak at some point and then move towards a downward trend. Experts have predicted the exact same phenomenon for housing real estate in GTA. They believe that the real estate market in GTA has already hit its peak and will now experience a decreasing trend.
To understand why the housing prices are expected to decrease, we should know that the interest rates for a mortgage have been low for the past two years (2020 and 2021). This has encouraged the investors to take up mortgages and make swift investment plans. Many real estate brokers have revealed that many high-end properties, including apartments, condos, penthouses and double story villas, have gone off the market minutes after being up on the listing. This is quite fascinating to observe as it has never happened before in the GTA real estate, and previously people used to struggle with the mortgage interest rates.
Experts also believe that the low interest rates prompt people, especially investors, to make impulsive decisions and lock the property with their name. There is a perceived high demand for housing real estate in GTA, right now and through the interest rate is low, it allows sellers to place the price of their liking.
Whether you are looking to buy a new house for you and your family or planning to sell out your property, I hope that this article helped you get clarity on the market situation next year. Again, all of the analysis is based on predictions by experts and financial analysts. The market prices can always fluctuate and prove all predicted theories wrong.
If you would like a customized plan and analysis based on your unique situation, book a consultation with me to help you better navigate the waters.