Toronto Housing prices continue to soar; February prices were 27.7 per cent higher than this time last year, and there seems no end in sight. The average cost of a detached home has reached the 1.5 million mark. Be that as it may, a stress test done by Canada Mortgage and Housing Corporation found that house prices could fall as much as 30 per cent if mortgage rates were to rise by 2.4 per cent over the next two years. This is what happened between 1989 and 1996 when Toronto house prices fell by 40 per cent.
It's a bubble and like all bubbles, it's just waiting to be burst and after it is those who bought homes at inflated prices will be very upset. So why go through all this nonsense?
Why not opt for a world where all will have a nice place to live without any price tags on them?
Steve and John
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