Anatomy of a hot real estate market

San Francisco’s housing market is strong for many of the same reasons as Toronto’s. They include:

  • Migration, which is adding 10,000 new residents each year
  • Low levels of unemployment which support prices
  • Surging stock markets that make people feel wealthier
  • High rents which make ownership attractive
  • Low interest rates
  • Source: Paragon Real Estate Group

    GTA housing market will stay intact as long as the economy is creating jobs.

    “San Francisco is strong because the job market is strong. If you can hang on to jobs in Toronto, then prices will hold up,” he says “But if the economy goes into a mild recession home prices will decline.”

    The bigger point is that whatever happens will not be world ending, but part of a cycle that has repeated itself many times since the Dutch Tulip mania of the 1600s.

    “While future cycles will vary in their details, the causes, effects and trends are often quite similar,” Carlisle says, adding in a recent research note: “Up, Down, Flat, Up Down, Flat . . . Repeat.”

    Read the complete article @ If GTA housing unravels

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    Prasad Ari

    Prasad Ari

    Sales Representative
    CENTURY 21 People's Choice Realty Inc., Brokerage*
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