TORONTO

I’m about to burst the housing bubble.

At least the talk about one.

Price has always been determined by supply and demand. It’s the first and frankly the only lesson in business. Too much demand, not enough supply, the prices go up until water finds its mark. Reverse holds true as well.

So what is causing the demand for Toronto houses?

Low interest rates

Absolutely. Consumers get a bigger bang for their buck. Are interest rates going to stay low? Yes. Our economy is sluggish and needs the type of stimulation that low interest rates provide.

Population

Our population is increasing and projected to be nine million plus in the next 20 years.

Immigration

When people immigrate to Canada, many want to live in Toronto. We are constantly cited as one of the best cities in which to live. We have culture, energy, water and anyone from anywhere in the world can find like-minded people.

Empty Nesters

All those boomers who moved to the 905 to spawn a family are now willing to sell their homes and move back downtown where they walk to restaurants and culture.

Commuters

Those poor tortured souls who fight gridlock every day. Many have decided it’s not worth the hassle.

Investment

We all remember 2008 and many of us are getting bruised in the market as I write this. I would rather own an asset I can live in and enjoy versus a stock market I know nothing about.

Youth

Many young people are buying with the help of parents or grandparents, or an inheritance.

Scarcity

We can build upwards and there are some stunning condos available. (I have a few if anyone is interested.) The reality is there are no farmlands in Toronto that can be turned into housing. If you want a house, you need to buy an existing one.

Will there be market corrections and hiccups? Of course, that’s how capitalism flows. Unless there’s a major collapse or an unanticipated disaster, I will give you the same advice I give my clients.

Hold, don’t fold.

--Madigan is a sales rep with Re/Max Hallmark Realty Ltd. Brokerage