In general, the value of real estate will slowly deflate as the bulk of the population (Baby Boomers) begin to retire and sell off their assets.  In the near term, poor economic growth is forcing low interest rates, making investment in real estate more attractive than other sectors, with a strong downside risk.

Resale House Data

chart_may13_10 chart_may13_5 chart_may13_9

Some material Source: Statistics Canada, The Bank of Canada, Toronto Real Estate Board, Realtors Association of Hamilton-Burlington, CMHC

Housing Price Pressure Indicators
Net MigrationThe GTA increased population by 474,086 in the five years from 2001 -2006 and is expected to increase by 2 million people in the next 25 years. Interest RatesHistorical low interest rates are pushing the value of real estate up.This pressure is not expected to drop soon. Unemployment RateHigh unemployment at 6.6% (Aug 2015)
6.9% (July 2015)
7.0% (June 2015)
7.1% (May 2015)
7.2% (April 2015)
7.5% (Mar 2015)
7.8% (Feb 2015)
InventoryThere are not enough high quality properties available for sale to satisfy the demand. DollarRecently lower CAD vs USD makes GTA goods more attractive to US market. Economic Activity
Slow economic growth

Historical Data

Growth Map Toronto, Q2 2015 y/y

Growth Map Toronto, Q2 2015 y/y

Growth Heat Map Hamilton Oct 2016 vs Oct 2015

Growth Heat Map Hamilton Oct 2016 vs Oct 2015

Heat map of Average Price Increases in Mississauga y/y

Growth Heat Map Mississauga Sept 2014 y/y

Click the Image for larger view

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