Real Estate

TD and BMO: Toronto housing prices "simply unsustainable" and a "bubble"

  • Last Updated:
  • Mar 20th, 2017 10:09 pm
46 replies
Member
Sep 16, 2009
262 posts
83 upvotes
I think any sane person would agree that prices are high. But any sane person would also agree at the same time there isn't quite a catalyst for prices to drop just yet. Rates are not going to rise 2% overnight - 0.25% would be a big step. And Employment is holding steady. In other words, no one can tell how far up the peak is, till you start going down. And even then, no one can predict how far down the bottom is.

Probably not the best time to buy, but then who really knows?
Sr. Member
Jan 14, 2009
784 posts
252 upvotes
Vancouver, BC
They sound like priced out renters and probably are. Just buy a condo or move.
Deal Addict
Jul 29, 2006
3386 posts
356 upvotes
new day, new warning article.
Deal Addict
User avatar
Sep 16, 2012
2991 posts
287 upvotes
Mississauga
Over leveraged consumers are bad for financial institutions because that means that are less likely to use other credit products for other forms of spending, the banks see this as a negative in terms of ensuring that consumers are able to continue to prop up the economy.
Deal Addict
Dec 5, 2009
4349 posts
2133 upvotes
Bank CEOs are priced out renters.
Member
Sep 16, 2009
262 posts
83 upvotes
fdl wrote:
Mar 17th, 2017 11:55 am
Bank CEOs are priced out renters.
No but they are seemingly making up absurd sensational scenarios. If you earn 225 K and can only save 100 K, thats your real problem, not mortgage affordability.
Deal Addict
Dec 5, 2015
1283 posts
410 upvotes
Thornhill, ON
Ummmm....10k in property taxes a year they assumed? Lol

1440 in gas a year?

What planet are they on?
Temp. Banned
Feb 13, 2017
702 posts
808 upvotes
LOL.

Same article, different decade.

Keep trying.
Sr. Member
Jan 26, 2016
614 posts
455 upvotes
Toronto, ON
So did they stop giving out loans in GTA?

Didn't think so!
Newbie
Jul 17, 2010
66 posts
5 upvotes
Toronto
Smiling Face With Open Mouthgood one.
crocp8 wrote:
Mar 17th, 2017 1:02 pm
LOL.

Same article, different decade.

Keep trying.
Deal Addict
Dec 5, 2009
4349 posts
2133 upvotes
Doubleshot wrote:
Mar 17th, 2017 12:50 pm
Ummmm....10k in property taxes a year they assumed? Lol

1440 in gas a year?

What planet are they on?
Seems reasonable that a 4000+ sq foot detached is a good "starter home" for this analysis. :)
Member
Sep 19, 2012
365 posts
213 upvotes
Calgary
oasis2002 wrote:
Mar 17th, 2017 11:58 am
No but they are seemingly making up absurd sensational scenarios. If you earn 225 K and can only save 100 K, thats your real problem, not mortgage affordability.
How much more than $100k would you want that earner to to save?
[OP]
Penalty Box
Nov 18, 2014
660 posts
538 upvotes
Toronto, ON
WinterSleep wrote:
Mar 17th, 2017 1:11 pm
So did they stop giving out loans in GTA?

Didn't think so!
Why would they? All the risky loans are backstopped by CMHC. It's essentially a license to print money for the banks.
Member
Sep 16, 2009
262 posts
83 upvotes
ahlaker wrote:
Mar 17th, 2017 1:38 pm
How much more than $100k would you want that earner to to save?
An average of 50 K per year at that income level, if they are renting. Its painful but doable. You cant have it all.

In any case, this is not an endorsement of Toronto RE prices - which are high for sure. But we live in a world where people want to eat out all the time, have to take annual trips to Europe, must have the latest gadgets, their wives have to buy 800 dollar strollers and what not and complain about not saving money. Its not even a millennial issue - Its just a present day issue. I could rant for hours about that but the sad thing is that Frugality is out of style. People young and old are still working hard - but just not good at keeping a lid on their impulses.

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