Toronto Falls Into Moderate Bubble Risk | Sivage Sivagumaran, CPA | https://sivagerealty.ca | How to Find the Best Real Estate Agent in Toronto for Your Needs?

Toronto has officially landed in the 'moderate bubble risk' category, according to a leading global wealth manager. Over the past year, Toronto home prices have dropped by approximately 11%—the steepest annual decline among 23 major cities surveyed. From 2014 to 2022, our city led the pack, with real prices doubling amid strong immigration, investor enthusiasm, and robust building activity. But since 2022, rising interest rates, the foreign-buyer ban, and increased housing supply have triggered a sharp correction, bringing prices nearly 30% below their peak. This shift has narrowed the gap between what homes cost and what residents can actually afford—a key metric when I advise clients on smart buying and selling decisions. The outlook suggests continued pressure on prices as inventory grows and buyers act with caution in response to possible further rate hikes. As a Toronto-based real estate broker with a CPA background, I believe every move should be both strategic and financially sound—especially in a market this dynamic. My commitment is always to guide you with clarity and confidence, drawing on deep market insight and financial expertise to help you protect your investment and maximize value.