Author Topic: Toronto pricks a real estate bubble  (Read 338 times)

rcjordan

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Toronto pricks a real estate bubble
« on: March 07, 2018, 07:41:19 PM »
Home Prices Sink, Sales Plunge in Toronto

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The housing bubbles in Toronto and Vancouver that have been inflating without major disruptions for the past 18 years – not even the Financial Crisis put a major dent into them – have landed near the top of the lists of housing bubbles around the world, driven by numerous factors. Over the past 10 months, however, several changes have happened to contain the damage:

On April 20, 2017, the Ontario government introduced a 16-point laundry list of measures, including a 15% transfer tax on nonresident foreign buyers, designed to tamp down on the housing market and improve affordability (= price declines).
Since June 2017, the Bank of Canada raised its benchmark interest rate three times, to 1.25%, in line with the Fed’s lower end of the target range.

And as of January 1, 2018, the Office of the Superintendent of Financial Institutions (OSFI) requires new stress tests for variable-rate mortgages, on top of the stress tests that existed before.

Most mortgages in Canada adjust to interest rates either immediately or within a set number of years, such as five years. The 30-year fixed-rate mortgage, standard in the US, is rare in Canada.

https://wolfstreet.com/2018/03/06/home-prices-sink-sales-plunge-in-toronto/

Mackin USA

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Re: Toronto pricks a real estate bubble
« Reply #1 on: March 08, 2018, 12:40:09 PM »
Bubbles BRUST
Mr. Mackin