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Envy Pervades Toronto Housing Market

Posted by Jose Marc Castro on Feb 26, 2016 09:34 AM EST
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NEW YORK - NOVEMBER 09: An aerial view of the city of Toronto photographed on November 9, 2010 in Toronto, Canada. (Photo : Bruce Bennett/Getty Images)

There has been a tradition in the Toronto housing market every spring season. According to a report from The Globe and Mail, many real agents see that buyers get 'enthusiastic' with listings of properties when they find out there have been inquiries made on them.

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There is a flip side to it too. When bidders do not get the sense that there is competition over a piece of property, then they begin to rethink their bids eventually leading to a withdrawal of the bid.

These kinds of behavior are just part of the human nature, according to Sutton Group Associates Realty agent Christopher Bibby. He said this is about envy, "Everyone wants what other people want."

The list is long of instances that this had occurred. According to TheRedPin.com founder Rockham Fard, the fierce competition had gotten a lot of attention this year. Last year though, one in every six properties listed in the Toronto area had to be re-listed in order to get the attention.

Should this enthusiasm continue, the housing market of Canada would become a net contributor to the country's economic growth in the coming years. According to a report from BNN.ca, the rising prices would be a help in the short term but would become a burden due to high levels of debt incurred.

The report was based on a poll conducted by Reuters on Canadian housing market analysts. One of the poll participants, TD Economics' Diana Petramala, said, "The housing market may remain a key contributor over the next three to six months, as the knock-on effects from home prices and housing starts gains can be lagged."

She added, "But the market will likely become a net drag as sales and starts move back in line with historical averages and price growth eases."

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