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thatrapsfan
Superstar
Damn. @Supreme Leader Reinscarf claim coming to light 
BMO Chief Economist saying Toronto has a housing bubble:
Housing prices in Toronto and surrounding cities are rising at a "fiery" rate not seen since the late 1980s, according to the chief economist at BMO Capital Markets.
"Let's drop the pretence," Douglas Porter wrote in a commentary. "The Toronto market — and the many cities surrounding it — are in a housing bubble."
"Everyone may have a slightly different definition of what a bubble is, but most can agree it's when prices become dangerously detached from economic fundamentals and start rising strongly simply because people believe they will keep rising strongly, encouraging more buying," he said.
Porter downplays industry suggestions that a lack of new housing is the reason behind the big appreciation in prices in the GTA, pointing to strength in housing starts.
"The massive price gains are being driven first and foremost by sizzling hot demand, whether from ultra-low interest rates (negative in real terms), robust population growth, or non-resident investor demand," he wrote.
Region is 'very vulnerable'
Speaking on CBC Toronto's Metro Morning radio program, BMO senior economist Sal Guatieri said the bank is not using the term bubble to indicate a "huge correction" is expected in house prices in the region.
"We're not anticipating a meaningful correction in prices, but we do believe this market is now very vulnerable to a correction if something wrong happens," Guatieri told host Matt Galloway. "So, if interest rates do shoot higher or if we go into recession, for example, that would likely spur a material correction."
A correction, he said, generally means a price drop of around 10 per cent.
If that does happen, it would translate in less revenue for municipalities as construction activity and employment slows, he added
Guatieri said price increases are expected to slow this year, partly due to the new federal home financing rules that will make it harder to get a mortgage.
However, he added, we will see prices decline or stabilize at some point in the future to allow market fundamentals to catch up.
In late January, Canada Mortgage and Housing Corporation cautioned that speculation might be driving the price gains in Toronto and Hamilton, along with Vancouver and Victoria, as they were outstripping what economic fundamentals, such as migration, employment and income could support.
CMHC suggested the price gains in the GTA were contributing to increases in other southern Ontario cities, and even regions as far away as Sudbury and Ottawa.
Porter said that sales figure is being "artificially suppressed" by a sharp drop in Vancouver sales. He added that "serious churning" lies behind the headline figures.
"Toronto and any city that is remotely within commuting distance are overheating, and perhaps dangerously so," Porter said. "It's a very different story in most of the rest of the country, where conditions are generally calm and under control (with the exception of Victoria). And it's that deep divergence which continues to confound and bedevil policymakers."
BMO Chief Economist saying Toronto has a housing bubble:
Housing prices in Toronto and surrounding cities are rising at a "fiery" rate not seen since the late 1980s, according to the chief economist at BMO Capital Markets.
"Let's drop the pretence," Douglas Porter wrote in a commentary. "The Toronto market — and the many cities surrounding it — are in a housing bubble."
"Everyone may have a slightly different definition of what a bubble is, but most can agree it's when prices become dangerously detached from economic fundamentals and start rising strongly simply because people believe they will keep rising strongly, encouraging more buying," he said.
- Relying on rising home prices could be a fool's strategy: Don Pittis
- End of the run? Average house price up just 0.2% across Canada in January
Porter downplays industry suggestions that a lack of new housing is the reason behind the big appreciation in prices in the GTA, pointing to strength in housing starts.
"The massive price gains are being driven first and foremost by sizzling hot demand, whether from ultra-low interest rates (negative in real terms), robust population growth, or non-resident investor demand," he wrote.
Region is 'very vulnerable'
Speaking on CBC Toronto's Metro Morning radio program, BMO senior economist Sal Guatieri said the bank is not using the term bubble to indicate a "huge correction" is expected in house prices in the region.
"We're not anticipating a meaningful correction in prices, but we do believe this market is now very vulnerable to a correction if something wrong happens," Guatieri told host Matt Galloway. "So, if interest rates do shoot higher or if we go into recession, for example, that would likely spur a material correction."
A correction, he said, generally means a price drop of around 10 per cent.
If that does happen, it would translate in less revenue for municipalities as construction activity and employment slows, he added
Guatieri said price increases are expected to slow this year, partly due to the new federal home financing rules that will make it harder to get a mortgage.
However, he added, we will see prices decline or stabilize at some point in the future to allow market fundamentals to catch up.
In late January, Canada Mortgage and Housing Corporation cautioned that speculation might be driving the price gains in Toronto and Hamilton, along with Vancouver and Victoria, as they were outstripping what economic fundamentals, such as migration, employment and income could support.
CMHC suggested the price gains in the GTA were contributing to increases in other southern Ontario cities, and even regions as far away as Sudbury and Ottawa.
- Speculation likely still driving up house prices in B.C., Toronto, Hamilton, CMHC says
- GTA driving up prices far away in Sudbury, Ottawa: CMHC
Porter said that sales figure is being "artificially suppressed" by a sharp drop in Vancouver sales. He added that "serious churning" lies behind the headline figures.
"Toronto and any city that is remotely within commuting distance are overheating, and perhaps dangerously so," Porter said. "It's a very different story in most of the rest of the country, where conditions are generally calm and under control (with the exception of Victoria). And it's that deep divergence which continues to confound and bedevil policymakers."
thatrapsfan
Superstar
Toronto Home Sellers Vanish as BMO Warns of Housing Bubble
Conventional wisdom suggests that when prices soar for something, so does its supply -- except when you are talking about Toronto’s housing market.
Real estate in Canada’s biggest city has become so expensive that potential home sellers are pulling out of the market altogether, possibly since they have nowhere cheaper to move to as the housing boom expands into Toronto’s suburbs and neighboring towns.
Conventional wisdom suggests that when prices soar for something, so does its supply -- except when you are talking about Toronto’s housing market.
Real estate in Canada’s biggest city has become so expensive that potential home sellers are pulling out of the market altogether, possibly since they have nowhere cheaper to move to as the housing boom expands into Toronto’s suburbs and neighboring towns.
thatrapsfan
Superstar
You could create a plat TLR thread by posting this article.
Excellent
I'll be ready to scoop a house when interest rates go up and folks are paying a mortgage of 800k on q house with 250k
I'll be ready to scoop a house when interest rates go up and folks are paying a mortgage of 800k on q house with 250k
Lol all of this?
When you can just call fido and get a 50 dollar 5 gig unlimited Canada wide minutes and texts, caller ID in two minutes
When you can just call fido and get a 50 dollar 5 gig unlimited Canada wide minutes and texts, caller ID in two minutes
thatrapsfan
Superstar
You got a link to this deal? Is it offered with more data? My phones unlocked so can change anytime
You got a link to this deal? Is it offered with more data? My phones unlocked so can change anytime
Yeah is this deal publicized? I went on Fido s site very briefly and didn't see it.
I wanted to go to Fido before koodo but 5gb for 48 beats 3gb for 60.
http://forums.redflagdeals.com/fido-5gb-unlimited-cdn-talk-text-50-month-2080208/
All I did is call fido I'm with them but you don't have to be you can bring your own phone and get it.
I
All I did is call fido I'm with them but you don't have to be you can bring your own phone and get it.
I
You got a link to this deal? Is it offered with more data? My phones unlocked so can change anytime
Fido would never publish on their site , the deal is to damn good and expires on the 23rd
I was paying fido like 86 a month for 6 gigs and unlimited Canada wide calling.
My girl was paying 65 for 3 gigs and unlimited calling
Now we're both just paying 50 a month for 5 gigs and unlimited calling.
I was paying fido like 86 a month for 6 gigs and unlimited Canada wide calling.
My girl was paying 65 for 3 gigs and unlimited calling
Now we're both just paying 50 a month for 5 gigs and unlimited calling.