The average price of a new detached house in the Toronto region has risen a staggering 27 per cent, or $258,000, in the last year to an average $1.24 million, according to the latest statistics released by Altus Data Solutions for the Building and Land Development Association (BILD).
It looks like Toronto has surpassed the other crazy Canadian city.
The new home numbers come a day after RBC reported that the Toronto region has surpassed Vancouver as the least affordable home market in the country.
Wages have been stagnant. The TSX has gone up a puny 12% since the start of 2014. Lot of people have gone neck-high in debt to buy their house because, can't you see!, real estate prices always go up.
The Bank of Canada will be under pressure to raise interest rates in the coming years. The crash will be very likely then. The prices of houses will plummet but the mortgage payments will increase! History will repeat itself.