Ashley Lo | Real Estate Solutions

Why it’s still a good time to buy



A couple of weeks ago, I did a home buyer seminar. I got a lot of good feedback so I decided, why not share some of the key points?


  • Interest rates are at historical lows! In the 1980’s, interest rates were at all time highs at about 18%. Now, interest rates are at all time lows! We are seeing interest rates such as 2.99% for a 5 year fixed term! The only caveat is that lending rules are becoming more and more stringent, so if you can approved, go for it!

  • We are not in a bubble! Contrary to what some people may say, we are not in a housing bubble! A bubble is It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. We did see this in the late 1980’s when average percentage increase in the years leading up to the peak was 22%! Between 1986 and 1987, there was actually a 36% increase! In the past couple of years, we’ve been seeing increases, on average, at about 6%. (See previous post – The Canadian banking system is unlike the States)

  • The Canadian GDP is correlated with Toronto housing prices. There is a strong correlation between Canadian/Ontario/Toronto GDP and Toronto housing prices. The last time we saw a deviation, it was during the housing bubble in the 1980’s. Currently we are seeing a steady growth in Toronto GDP, which is expected to increase about 13% from 2010 to 2015! This is also in line with Canadian GDP growth.

  • Other factors. What can I say, Toronto is a great city to live in! Due to high immigration, population is expected to grow by 1 million people in the next decade. That’s an increase of 33%! Foreign investors also see the potential. We are seeing investors from all over the globe including China, Iran, India & European countries such as Greece and Italy.


  • There’s no time like the present! If you have any questions, feel free to Contact me.

    Ashley Lo | Real Estate Advice, Real Estate Solutions


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