Will Toronto Prices Rival Vancouver’s in Ten Years?

Will Toronto Prices Rival Vancouver's in Ten Years?Toronto could see house prices hit the stratospheric levels of Vancouver’s within a decade unless ways are found to cool demand or boost the supply of single-family homes, says one of the city’s leading housing experts.

Too much concern has focused on Toronto’s condo boom and fears it’s about to go bust when the bigger issue for the city is the “dramatic” escalation in prices for single-family homes and demand that continues to far outstrip supply, says veteran housing consultant Barry Lyon.

There is a growing realization that the GTA housing market, and Toronto in particular, has become very much a tale of two markets — houses and high-rise condos.

And while everyone is focused on all those glass-and-steel highrises pushing up into the sky, not enough attention is on the ground where construction of new single-family homes has dropped like a rock. Click here to view the full article.

Here’s a contrarian view of the Toronto area real estate market, given all recent doom and gloom about overpriced houses and a coming correction. This expert is saying that prices for houses in Toronto will continue to move up quickly over the next few years, simply because the demand is so much greater than the supply. The result could be Vancouver-ish prices within a decade. At the same time, we are building huge numbers of ever-smaller condos and are at risk of supply exceeding demand over the next few years. Not only that, basic demographics dictate that the young folks who are buying condos today will be selling them & wanting to buy houses in a few years, which of course will further exacerbate the problem. As the author says, Toronto is becoming “a tale of two markets”, with the condo and house markets possibly diverging sharply over the coming decade.