Thursday, 30 May 2013

OECD Says Toronto Condos are RISKY

According to OECD, Canada is in a category of three countries where real estate is overvalued yet prices are still rising. Additionally, Canada, Norway and New Zealand are most vulnerable to real estate correction. Especially if interest rates rise! 


From BNN

Peter Jarrett, head of the Canadian Division at OECD, says the housing market in Canada is "exceptional in terms of not having gone through much of any correction since the turn of the millennium 12 or 13 years ago," he says. "So when you take them [prices] relative to fundamentals there are a lot of questions that can be asked."

The risks to the housing market are particularly pronounced in markets like Toronto that have seen some of the largest run-ups in prices, he says. The Toronto condominium market is the agency's "number one concern."

Nonetheless, Jarret says the agency still believes a "soft-landing" is in store for the country's housing market, but warns that if prices "drop sharply" then economic growth will be considerably weaker than the OECD's current forecasts.

Is soft landing possible? Yes. However the question is, how probable is it? 

 

Disclaimer

The information presented on this website is purely for entertainment purposes and should not be considered as an investment advice or any kind of advice at all. Statistics presented on this site are not guaranteed to be accurate, and there could be errors in the information presented on this site. However authors do try to present information as accurately as possible. The opinions of the authors and commentators are just that, opinions! Please always make up your own mind about things in life, and never take things for granted, including on this site. Hope you have a great day!

Contact Me

You can reach the authors of this site by emailing to: torontocondobubble (at) gmail.com Authors of this website try to cite all their information sources to the best of their abilities. If for some reason you believe we infringed on your copyright, please email us and we will fix it as soon as possible!

Privacy Policy

Please familiarize yourself with our Privacy Policy