GTA real estate has gone nuts...........

[Berubeland]

If RE is adjusting to globalization...so is the labour market and there are a whole lot of people in other parts of the world who will do what the vast majority of what we do for a whole lot less.

[Jungle]

I dunno, I think that will just divide the rich and the poor if this keeps going. What if we end up like a min New York or Hong Kong ?

[donald]

It def seems(obviously)that the chinese have cliamed toronto & vancouver(aint nothing anybody can do about that).Hard to disagree with brad lamb in the garth turner article linked in this thread.Vancouver is already like hong kong is'nt it?

[ghayoor]

I know a person who buy 50k house. I was astonished that how the champ, is covering all these!!!!!

[Pigzfly]

There is a rarely-used immigration policy that basically allows family immigration for an investment in the economy. Houses count as an investment in the economy, provided they are over 500K. I went to school with a number of ex-pats who were here, living with their mother or older sibling, while Dad stayed in their home country working. They wanted a Canadian and English education for their children and this is a way to achieve that end. (Other people I went to school with paid tuition for my public school. I vaguely recall it was 26K a year and all of us ungrateful brats couldn't believe someone would pay that!)

[Lucy]

Canadians have now surpassed US 2008 debt to income ratios plus we are more heavily taxedeanong the debt burden is greater. This will be lowered by a real estate correction accompanied by large unemployment, (perhaps US style).

I've been selling real estate in the GTA for 26 years. I went thru the 1990-1995 correction and it was very ugly and negative. This correction should be worse because debt levels are double. Debt to income levels are the indicator that the Canadian economy is a steaming pile of debt.

I am absolutely amazed that the Canadian governments lack of leadership on this. Especially sincethe writing is on the wall and warning signes are all around us. Plus they should Pay attention to the examples of what over indebtedness brings, from around the world and south of the boarder.

Much of the damage has already been done but what happens if this continues at this pace for another 2-3 years. We truly have an immature government steering outmr economy.

[canadianbanks]

I see this as the final blow-off phase of a bubble that has been inflating for more than a decade. In the Yonge & Eglinton area semis and detached homes are selling for 20% more than they were selling last fall. I think the end of the bubble is very close now. As for how low we would go after the peak, I don't see problems with 30% down from the top over the next 3 years.

[Lucy]

Possibly, or maybe another year or two of madness. I believe the central core has experienced 20% appreciation for a couple of years now according to my fellow realtors.

I noticed your screen name is Canuck Banks. When RE corrects, banks will no longer seem so solid. They have benefitted by this bubble more than anyone, and many of their 30 something emloyees have not experienced a correction including the 30 something condo and homeowners.

[andrewf]

Macleans: The under the radar changes that may soon deflate or pop the housing bubble:

[Dmoney]

Hurry up and burst already. I'm on the sidelines waiting to buy. Would love a semi under $500K or a detached under a million.