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Mortgage Broker News | 16 Feb 2017, 08:15 AM Agree 0
Well, this may be the first time in recent memory a big bank economist has used the feared B-word in relation to real estate
  • DM | 16 Feb 2017, 11:23 AM Agree 0
    Smaller areas cannot build a detached home for under 350k. the work force is mostly service, so high wages are not in the picture. Buy a vacant lot for 80,000.00, development fees are 31k and water connection about 10k. so before shovel in ground costs are 121k. then take a 185 dollars per sq foot to build a 1200 sq foot home without finished basement you have over 350k in just costs. That is not a bubble that is reality here where I live. now service industry employees do not qualify for mortgage with new rules. I agree Toronto is hot and also surrounding areas of Toronto but where are the higher paying jobs ... CITY!
  • James | 16 Feb 2017, 11:34 AM Agree 0
    Bubble? Is this the same bubble they have been crying about for the last 6 years? It is time to face the fact that Toronto is a world class city that attracts people from all over the world and this pushes up prices. Try to buy a home in Paris or London and tell me then we are overpriced. Look at NYC. Is that also a bubble? I think not. There is not bubble my friends. It is simply supply vs demand. That's it. Nothing else. More people want to buy here than people who want to sell. This drives up the price. As long as demand for Toronto is greater than the supply, the prices will keep going up. So the real question is - will demand continue to be greater than supply? Of course it will. Look at how many immigrants come to the city every year. Look at the foreign money from China and Russia that is flowing into safe Canada. As long as these happen, expect Toronto price to go up.
  • Nick Mitskopoulos | 16 Feb 2017, 04:18 PM Agree 0
    James.... well put!!
  • Tony Colalillo | 21 Feb 2017, 09:20 AM Agree 0
    You have to love these bank based economists who have been screaming "bubble" ever since the fraud induced real estate collapse in the USA in 2009. Market forces, left to themselves, will fix any imbalances currently in the system...just like in Vancouver presently and Alberta after the oil price tumbled in 2013/14. And if you apply the same terms of measurements to the North American major stock indices, like the Dow Jones Industrials since Trump won the election, and also the TSX with the oil recovery, in the last few months you get a bigger run up in an even shorter period of time - yet there are no worries about 'bubbles" in the equity markets - which are simply valuations of paper equity - regarding those valuations. You get lots of cheerleading and talk of 'animal spirits' on a buying spree.
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