The Toronto housing market prices are rising at an all time high. A report done by RBC Economics places emphasis on the fact that the Toronto housing market is picking up speed at an “uncomfortable” magnitude– one that resembles how the market was in 2016. Grant Duarte’s parents bought their first home when they were 25– it was a three bedroom home, with a double garage in Mississauga. They bought the home in 1992 for $192,000. In 2000, they decided to move and sold the home for $260,000. Today, due to the price inflation in the economy, the same home that was bought for $260,000- is now worth upwards of $1 million. It is becoming incredibly difficult for anyone to find an affordable home in Toronto, even more so for millennials who probably do not have a stable income. As an individual who is interested in living in Toronto long after University, what does this mean for me? Will the skyrocketing house prices prevent me from continuing to stay a resident in the city?
From a recent study that was done by the Toronto Real Estate Board, January was the largest month-over-month price increase since October 2017 (See data set below). There was an average selling price increase by 12.3 percent year-over-year. From TD Economics an analysis was done, they predict an acceleration in the price growth from four percent in 2019, to eight percent this year, due to the combination of rising demands and constrained supplies.
In January, the average price for detached homes in Toronto was $1,038,247, it has gone up 10.5% since the year before. Condo prices have grown 15% since the year prior, the prices are currently sitting at an average of $630,047. These numbers are scary for first time buyers, especially ones with an unstable income. How is anyone ever going to enter the marketplace when the prices are so steep? The expected key issue that will occur in the housing market in 2020, will be the shortage of listings. It is said that without relief on the housing supply front, the pace of price growth will continue to rise.
The following video is an interview with Penelope Graham, the managing editor at Zoocasa. She goes into depth with BNN Bloomberg news reporter, about how the Toronto median house price is nearly equivalent to the yearly salary of an average person living in Toronto.
As a University student, the rise in the housing prices is becoming more and more unsettling. I am becoming anxious thinking about how difficult it will be to find a home post-university, or even for the next year. A group of my friends and I are now looking for places to rent and we are shocked about how the prices have increased over the years. One of my friends’ brothers went to the University Of Toronto fifteen years ago, and the prices were much more affordable. This drastic change in the prices of homes in Toronto is outstanding, as an individual planning on living in Toronto later on, I am fearful of these prices.
Sources
https://www.zolo.ca/toronto-real-estate/trends
https://www.mortgagesandbox.com/toronto-real-estate-forecast
Brooklyn's blog 
I completely agree with everything you’ve talked about in this blog. Throughout the past decade or so, prices for houses and condo have skyrocketed making neat impossible for a student to afford such prices. It definitely is a huge problem for us and for Millenials, but also for regular people who don’t have stable incomes as well. I’m also quite fearful for the future too because I haven’t found 1 single affordable place and prices will only continue to rise.
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