Tuesday, 3 January 2017
Is Canadian real estate going to crash in 2017? According to Motley Fool the answer is yes. The big reason for the potential crash, Motley says, is the fact that demand is drying up from buyers. Well, demand for housing was up and down for the past decade, so I don't really buy their reason.
Furthermore, Motley Fool writes that new mortgage rules will have a great impact on already stretched first time buyers. Hm, really? Mortgage rules have been tightened up before. Not once, not twice, but many many times!
Finally, Motley mentions the possibility of mortgage rates going up. While true, people have been saying this since 2011! Who knows when the rates are going to go up by a substantial amount that would shock the waves through the housing market.
Anyway, why am I writing all of this? Simply to tell you that I have no idea whether the market is going to crash this year or not - I really don't!
The Toronto housing market went up over 20% last year. Interestingly prices tend to rises at the fastest rate just before the peak of the bubble. Is this a sign? I don't know. We can have another 20% increase this year, I don't know.
In any case Happy 2017 everyone!
canada housing bubble|Toronto Housing Bubble|