Rising Home Prices No Longer Limited To The GTA
The last few days CMHC has been speaking about their concerns related to what they deem as “Spillover” in terms of rising prices in communities neighbouring the GTA such as Hamilton, St. Catharines and Niagara Falls. Prices are indeed rising, in fact prices in Hamilton are rising at $1.40 for every $1.00 that prices increase in the GTA and new developments are selling out in days as you move towards Niagara. Why does this always have to be a problem. It could not possibly be that Canada is one of the greatest countries in the world and Toronto and surrounding area provide one of the best quality of life to residents compared to anywhere on the planet. We as Canadians need to start believing that the reason for the boom in population and subsequently real estate prices in Southwest Ontario is because Canada is great and the “Golden Horseshoe” is the epicentre. We should accept that we are great, we should accept that we are very desirable place for people to settle. This is not a short term problem, this is the long term reality. In the absence of a recession which will cause a short term small correction in prices (5%) or a large scale increase in interest rates we can expect that the demand will continue to outpace the available supply across the region and prices will rise.