While thunderous rainstorms on both coasts and the snow squalls battered Ontario and Quebec, economic spirits were also dampened when the Bank of Canada Governor Stephen Poloz cautioned Canadians that the housing market could be over-valued anywhere from ten to thirty percent yesterday. These estimates are higher than both the International Monetary Fund and the Canada Housing and Mortgage Corporation's more restrained positions.
The irony is that it's the Bank of Canada's own policy of sustained low interest rates which are the culprit, which have pushed Canadian debt levels to record heights. Basically, amidst all the global economic juggernauts which hold the Canadian economy hostage, the domestic concern is whether everyone can make their mortgage payments.
Today, in an interview with Business News Network, Peter Norman – chief economist for Altus Group – shared his outlook about the Bank of Canada's press release on Canada's real estate market. He discusses the impacts of debt risk, regional markets including oil, the lack of supply in single family homes, and the relationship between the condo and rental markets. For those easily spooked, this video is worth the 5 minutes view, as it addresses why a correction may never come.
What about the Toronto real estate market?
There are multiple factors which influence the dynamics of the Toronto real estate market. We explore these in our own comprehensive Toronto real estate forecasts –> Urbaneer’s Toronto Real Estate Fall 2014 Forecast: Part One and Urbaneer’s Toronto Real Estate Fall Forecast 2014: Part Two which synthesize our own insights – along with those in the press – on the risks and opportunities in Toronto. If you're looking for guidance on more local market dynamics, these are worth reading!
At urbaneer.com, whether you're purchasing a personal residence, or you're investing in your financial future, we're here to help! Serving liberated, progressive pro-urban Torontonians for over two decades, our friendly, fashionable boutique real estate service always has your interests at heart. Building clientele for life, consider letting us help build your real estate portfolio, one property at a time.
~ Steven and the urbaneer team
One of Bosley's Top Ten Realtors
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Tales From The Real Estate Trenches