Cause of rocketing house prices in SW Ontario
I'm having a hard time understanding why house prices have dramatically increased in Southwestern Ontario (within ~100km radius of GTA) in the last couple of years? The population is relatively low and steady and there's new housing development all the time to keep up with the demand.
Is it be because foreign "investors" (namely from China) are buying property in the GTA, to reduce supply and then jack up the prices to make a profit, and thus making it unaffordable for locals who are then forced to move outside the GTA increasing the house prices for everyone else? This is what I've been hearing, is this true?
I'm very fortunate I bought when I did because I wouldn't be able to afford my house now - the value has almost doubled in 4 years, which is insane. I'm not complaining but apart of me wonders if prices will come crashing down at some point...I know I won't lose any money on my house so I'm not personally worried but I do wonder for others. I also worry for those who are looking to buy both in the short and long-term...how will they afford it?
I'm just trying to understand the situation and educate myself as I'm "not into" real estate.