Before you buy a house in Canada in general and Greater Toronto Area (GTA) in particular, you need to know about a housing bubble. The reason I keep saying do not just jump into the market yet is because the real estate practitioners are worried whether the bubble is going to burst anytime soon. Remember housing price was at the peak in 2022 and the price was checked with the interest rate rise. It is not that the bubble is burst yet, it is just controlled. It is important to understand it. Let’s talk about what it is. 

A housing bubble happens when housing prices skyrocket, and real estate values become so unsustainably high that eventually the bubble bursts. Housing prices are disconnected from the “intrinsic property values.” Intrinsic property values are prices based on economic factors like income levels, rental costs, and other things that traditionally influence property values. Skyrocketing housing bubble prices occur when several things happen at once. Some of the contributing factors are: Speculation, Limited Housing, Interest Rates, Mortgage Debts, and Increased Development.