GTA Market Hit Hard By Plummeting Prices

May 28th, 2017 · 1 Comment · Rental Property

While apparently the Vancouver market has recovered from the Foreign Buyer Tax a year later, I believe that the Toronto Market has to deal with a number of other significant blows simultaneously.

  1. Tightening of credit due to Home Capital Group
  2. Rent Increase Legislation Changes
  3. Change to Laws Regarding Owner Occupancy Re:Sales
  4. Mortgage Syndication Fraud
  5. Consumer Fatigue with High Prices
  6. Poor Economy reliant on us selling Real Estate to each other
  7. General Endemic Mortgage Fraud
  8. Bear Epidemic in Toronto

The bottom line is it won’t take much to topple this house of cards because the fundamental support required to sustain these house prices isn’t there. Incomes are not rising and we are facing a depression of catastrophic proportions because up to 25% of our economy is reliant on us selling real estate to each other.

There is nothing to this bubble except the consumer sentiment that house prices always go up.

I would also love to officially welcome John Pasalis to the darkside. It’s very bearish here. Follow him on Twitter @johnpasalis

Happy Sunday!

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