Toronto, Vancouver, and Calgary were ranked as the 3 most “resilient” cities in the world, according to a U.K. investment firm.
Out of a group of 50 global cities, they are the best cities to invest in real estate for the long term because they are best able to rise above the cyclical ups and downs of the real estate market. This ranking doesn’t come as much from short term return on investment, but more long term resilience. The Toronto Star published an interesting article about it this week, which has inspired this blog post.
“In the round, Canadian cities- and Toronto in particular- are exceptionally good real estate destinations in the long term.” said group research director and economist Richard Barkham in a phone interview with the Toronto Star. “These Canadian cities have a great deal of economic dynamism.” This ties in well with an article I shared last week about first time buyers feeling more confident, even though they’ll have to save more than they may like. Buyers are more comfortable purchasing property if they see their home value continuing to rise down the road.
There has been talk and concern that the Toronto market is getting too hot, but it’s good to see that now people are accepting how much potential the Toronto real estate market has. Yes prices have been rising at a fast rate, and that rate will have to slow down at some point to keep in line with incomes, but Toronto is becoming a more global city and is going to remain a competitive market. I would confidently advise anyone that the Toronto real estate market it a great place to invest.
If you’d like more info on this subject, check out “Canada Housing Market Not Headed for Bubble” in today’s Globe & Mail Spring Real Estate Collection. And while you’re there, check out Linda Tickins’ full page ad to see our great new listings!