Fundamentals, eh?jonkoktosen wrote: ↑Apr 22nd, 2017 10:10 pmThe government isn't omnipotent. By their own admission, they don't even fully understand this market, much less are they able to control animal instincts even if they did.
This bubble is complex and a myriad of factors have culminated in the current housing euphoria - One thing is for certain though, sentiment, not fundamentals have taken over. It's possible that this government may have just killed sentiment and "pricked the bubble" in the process. We don't know if this is the bursting of the bubble yet, but when fundamentals reassert - and they will- many overextended sheep will learn the hard way that mean reversion is a b*tch.
Did we rid off 200k yearly population increase in GTA? And did we get many new houses built? Hardly. In last few years demand was steady while supply sometimes didn't follow it. In Burlington few years ago they had maybe 500+ new houses every year. Last two years they build only ~50 semis (which being sold in few hours). Quite same story for Oakville. Demand overwhelm supply with great magnitude and you believe prices will fall just because everyone will trust BS from Wayne ? FB tax didn't work in Vancouver, hardly will in Toronto