Photo: Eric Flexyourhead/Flickr
For reasons that are still uncertain to him, realtor Steve Saretsky suggests Vancouver’s housing market is a bellwether for Toronto’s and may provide insight into where the latter is headed in the near future.
Although prices in the respective markets appear to be moving in different directions at the moment — with Vancouver’s cooling and Toronto’s on the mend — the two have tracked very closely together since at least 2005, Saretsky highlights with a chart.
“Historical data suggests Toronto may simply be lagging behind Vancouver’s property cycle,” he writes in a blog post.
Zooming in on more recent times, Saretsky points out that from January 2015 onwards, Vancouver prices have been about three quarters ahead of Toronto’s in terms of increases and decreases.
Saretsky “doesn’t really know why” that is, but he has an idea and shares it with Livabl during an interview.
“As one area starts to get hot, people start to speculate on what the next area’s [going ]to be,” Saretsky explains.
“To me, Toronto really started to take off after we introduced our foreign-buyers’ tax,” he adds.
If recent history repeats itself, then Toronto’s rebound may just be a blip on the radar.