it's simple supply and demand. supply is not meeting demand and prices are therefore increasing, with multiple offers becoming more common in many areas.
so much for the 'bubble', especially with the condo market in Toronto. I don't see a glut of units for sale, or a high number of investors desperate to unload their units. supply is pretty short out there with new constructions still selling well and massive complexes only having 2 or 3 units (or none) listed for sale and when they do come up, they quickly sell.
why?
part if it can be attributed to interest rates remaining low (historically speaking), prices still not having fully recovered (though that's changing), and a lot of people simply have not been negatively impacted by the econominc downturn in terms if income and job stability (gov't workers, teachers, healthcare professionals, etc). they're either seeing the present time as a good opportunity to upsize or to enter the market. the purchase market has been quite healthy this year.
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