drbubb Posted June 3, 2012 Report Share Posted June 3, 2012 Toronto & Vancouver Real Estate Prices Toronto's housing market rocketing upward in price, height Toronto's economy is booming, and its housing market is booming right along with it. The city has an enormously large number of sky-rise buildings under construction, and many of them hardly get finished before they're purchased — usually for top dollar. All that has some wondering if Toronto might be heading for an American-style housing bubble. Madani sees a lot of common factors between what happened in the United States in the 2000s and what's happening in Canada today. “We see the run-up in household debt, which is now almost as high as it was in the United States. We see the same run-up in the homeownership rate, just like what we saw in the United States," Madani said. "And then finally, of course, we’re also seeing the over-building and the new home construction, and this is particularly true in the condo market in cities like Toronto.”Toronto is putting up the most high-rise buildings, anything from 12 to 39 floors, of any city in North America: 132. By way of comparison, the top U.S. city is New York. It’s building 86 high-rise towers. The Pooles, the young couple looking to buy a place, are well aware of all of the construction in Toronto. “Standing from our balcony there, we can see 14 cranes,” Chris said. Chris has heard the warnings that Toronto is building too much too fast. But he said he knows the other side of the argument. “Maybe we are behind what London, New York, what San Francisco is all about. Maybe this is sustainable, maybe this is the way things are going to be for a while," he said. "It’s hard to tell.” Most economists and real estate insiders do agree that real estate values in Toronto will almost certainly be higher in 20 years. So for a young couple looking to invest for the long-term, there’s really no bad time to buy. That is, if there’s something they can afford. . . .My forecast is, this year, probably price growth of 2 or 3 percent. 2013, probably a price decline of about 4 percent decline,” said Craig Alexander, chief economist with TD Bank. “We’ve penciled in around 25 percent price decline,” said David Madani with Capital Economics, though he emphasizes, that’s a rough estimate spread over several years. “We just don’t know,” said Phil Soper, president and CEO of Royal LePage Services, a real estate company. The big fear in Toronto, and even more so in high-flying Vancouver, is this: Is Canadian real estate at risk of an American-style collapse? /more: http://www.pri.org/stories/business/toronto-s-housing-market-rocketing-upward-in-price-height-10012.html Link to comment Share on other sites More sharing options...
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