Everyone is talking about our crazy real estate market, and in particular prices, they’re up 20% in just 4 months. You know I’ve been in this business for years and I’ve never seen anything like this. But, I’m not alarmed about the level of today’s prices, rather the rate of increase.
Toronto prices are not out of line with other major cities in the world. Will prices level off? Yes, they always do. Will prices fall? No. The only time prices fall are when people are forced to sell when they can’t afford their mortgage and mortgage rates are not rising anytime soon. If you think individuals have a problem with their debt levels, just look at our Governments, they’re in even worse shape.
We live in a high tax country. The average person stores their wealth in their property, just look at Europe, and we’re just the same now. So, get used to expensive houses.