June 30, 2010
When Mr. Heron says “no bubble trouble to report here,” I listen.
Hugh Heron – Principal, President of Heathwood Homes and Heron Homes – is a leader in the Canadian real-estate world. His positioning in the industry allows him a vantage point enjoyed by few others, that gives him a broad view of the industry’s landscape of issues, challenges and opportunities. For over 30 years, he has served in leadership positions at some of the industry’s most important institutions: former chair of the Ontario New Home Warranty Program, past president of both the Greater Toronto and Ontario Home Builders’ Associations and a board member of CMHC (Canada Mortgage & Housing). So, when Mr. Heron talks about the real-estate market, I listen!
Check out what he has to say in his column in the Toronto Sun regarding the rumors of a housing bubble:
“The one prediction that has come true, is that this year we would return to a normal real estate market — and that’s exactly what has happened.
Are there investors buying? Sure — and many opt for condominiums. Those who purchase for that reason understand the risk involved, and frankly, they help with Toronto’s rental accommodation situation.
But there is still a huge number purchasing homes and condominium suites to live in them. And that is most likely the best investment these people will make in their lives.
Prices are only going to go up, especially when you consider that we’re running out of places to build in the GTA. There are protected escarpment areas, and the waterfront is filling up.
Condominiums are key in accomplishing the intensification the provincial government calls for, and there are limits as to how much can be built nowadays.
Right or wrong, it’s reality. And remember that new homes bring in a lot of tax revenues to municipalities. One thing I’ve learned since coming to Canada is that immigrants arrive here mainly for a better life for their children, and because they dream of home ownership.
And remember, the Toronto area is still undervalued on the world stage. My crystal ball may not be perfect, but I see there always being a demand for housing in the GTA.
This is the most important municipal area in Canada, which is why nearly half of the 250,000 immigrants to Canada each year settle here.
We also have a banking system that is stable and conservative, and has saved us from the extreme problems the United States has experienced over the past few years.”
Agreed! Now is a good time to buy!