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The Sky Is Falling!  But is it really?  For years now there has been talk of this “bubble” looming over the housing markets of Toronto and Vancouver, and when is it going to pop?  Odds are, there is no bubble to worry about.  For years the talk has continued about it popping and the housing market crashing, and the consequences that will be felt.  Yet for years the market has just continued to grow exponentially, with no signs of stopping.  It’s kind of like that radio game you always hear: Beat the Bank.  Where the money just keeps going up and up and the player has to stop before the bell rings and they lose everything they’ve made.  Except in this case opinions are divided as to whether or not there will be a bell.  Either way the economy goes there will be repercussions, positive and negative.  On the one side if the bubble does pop the housing market will become more affordable in the city of Toronto for new and experienced home owners alike.  However, on the flipside, a lot of people would lose a lot of money.  Any equity that people had built up would be lost, or significantly damaged.  All in all, not a great experience for current home owners, but a positive for the newcomers.  If the market continues to grow and expand the way it is currently then the equity being built up in people’s homes will continue to increase and if they own multiple properties they could make a killing.  Unfortunately, the gap between the average worker and the price of homes will continue to grow making it harder for every day citizens to afford a home.  This is the way that the market has been going and will continue to go, but people are smart and are turning (and will continue to turn) toward affordable situations, such as condos. As it’s become more expensive for new buyers to get a house, many have been turning to condos within the city limits, creating an increase in the condo market.  The whole idea of a bubble comes from the fear of a crash like the United States had back in 2008.  However, this is not the same scenario, it may seem similar to many, but that is not the case.  The value of homes in the areas of Toronto and Vancouver continue to grow because of the amount of business, and appeal of location.  They are both huge film capitals in Canada and have lots of other business opportunities, they are very convenient and lively places to live.   Those business opportunities, and conveniences come with a cost, the cost of a house.  In order to have access to these things you need to be able to afford the housing, and that’s the way it’s always been.  Ultimately it is the will of the market and people.  If the houses are increasing and people are still living in the city clearly the market is still going strong and people can still afford to live there, or at least afford to rent apartments or buy condos.  If the prices increased and the city lost three quarters of it’s residents that would be extremely problematic.  But that’s not what we’re faced with here.  What we’re faced with is a housing market growing exponentially and people crying wolf.  There is no proof of a bubble, nor will there be one, it is simply the will of the economy.

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