All Star wrote:
I read this on another blog that I frequent. An interesting analogy and summary of the insane RE market today:
"Here is an analogy– 18 wheeler semi screaming down a one way highway on a road that eventually ends and well….falls off a cliff., The authorities try to warn the driver via CB radio , but he speeds up even more, they hastily install speed bumps, to no avail, truck keeps on moving, they throw down a few loads of gravel but nope, that badboy keeps on truckin. they deploy the spike strips, they slow it down but it still moving. Authorities are running out of time- the semi is almost at the point of no return by now so they shoot out the tires—– the truck is slowing but still moving towards the cliff…….. will it stop or is the momentum too great?
The top dogs at the Ministry of Finance, banks, and BofC, are scared shitless of the current conditions, they keep trying to cool things down to prevent an all out catastrophic crash but no one listens."
So true, unfortunately. BTW, those in the know are predicting a decline in prices of anywhere from 35%-50% later this year and continuing into 2018. A word to the wise.
And the world is going to end in 2023!!! lol
35% to 50%!!! "Those in the know" Know that those number are crazy insane and will never happen. Can a drop happen and will a drop happen. Absolutely, but never will it happen that drastically, if the market dropped 50% people would be jumping off buildings, there would be panac and disorder everywhere. That would just cause more problems for world wide governments. Let's not forget that we are talking about Canadian Bankinng System, where you must provide T4 slip to get a mortgage. Down payments are not small amounts. People will word hard not to lose their large downpayments. We also have to remember that Canada is not only the GTA. There are a lot a places to live that the houses are not selling for 1Million Dollars. Toronto is a major City and I feel like Toronto prices do not compare to Big City prices. I think Toronto should fall just under New York City or at least LA. That is if Toronto could move their traffic, housing should be close to the same. There is lots of room for growth in the market, Toronto will climb as they should