Toronto is one of the many great world cities that has been rendered nearly unlivable by real-estate speculation, both from onshore investors and offshore ones.
Following a raft of measures to cool off the property market, sales have plunged, down 35% overall in Feb 2017 relative to Feb 2016; prices are down an average of CAD110,000, and listings are up (which will drive the prices down further).
Bullish real estate investors point out that the market is still up relative to prices two years ago. However, bubble pricing is intrinsically unstable: people who bought property in Toronto on the belief that the market would always go up and there would always be tons of liquidity that would allow them to cash out on a few days' notice are now motivated to sell (especially if they were highly leveraged). When they list their properties, it drives the market down, panicking more investors, who list their properties -- lather, rinse, repeat, implode.
The anti-bubble measures included a 15% stamp duty on non-resident foreign speculators; higher interest rates set by the national bank; and tighter lending rules.
Canadian borrowers are largely in adjustable rate mortgages, making them liable to shocks if the Bank of Canada raises interest rates.
It split up this way:
City of Toronto: -6.1% to C$806,494.
Rest of the GTA without Toronto: -16.1% to C$743,196.
The movements of average prices showed a large disparity by home type, between condos, whose prices still rose despite a 30% plunge in sales volume, and the rest of the market:
Detached houses -17.2% to C$1,000,736
Semi-detached houses -8.6% to C$756,894
Townhouses -2.9% to C$638,691
Condos +10.1% to C$529,782
Home Prices Sink, Sales Plunge in Toronto [Wolf Richter/Wolf Street]
(via Naked Capitalism)
Copyright markets are -- and always have been -- broken. People make art because they have to, and there's always a middle-man ready to take advantage of the oversupply of willing creators to grab our rights and pay us peanuts.
Canada and Uruguay are the only two countries to have legalised the recreational use of marijuana (the Netherlands has laws on the books against it, but they're not enforced); the Canadian Securities Exchange has been transformed into "the cannabis stock exchange," a latter-day NASDAQ filled with hyperinflated stocks in legal weed companies.
When Vancouver tech retailer NCIX went bankrupt, it stopped paying its bills, including the bills for the storage where its servers were being kept; that led to the servers being auctioned off without being wiped first, containing sensitive data -- addresses, phone numbers, credit card numbers, passwords, etc -- for thousands of customers. Also on […]
Whether you’re heading for a career as a web developer or designer, the road is wide open. Careers in tech won’t be slowing down anytime soon, but it’s important that you keep up. Enter the Complete Learn to Code Masterclass Bundle. An invaluable resource for beginners or budding pros, the bundle teaches must-know development and […]
Sipping on whiskey is already a sophisticated experience, but that doesn’t mean you can’t kick it up a notch. A perfect addition to your desk or home bar, the Eravino Whiskey Globe Decanter features a beautifully etched map on the surface and an eye-catching glass ship inside, bringing an entirely new level of class to […]
Gone are the days when you needed to pore over a 400-page physics textbook to learn about weight ratios, aerodynamics, and all of those other STEM concepts that let us take to the skies. Thanks to Force Flyers’ DIY Building Block Drones, you can foster your STEM knowledge as you build and fly your own functional […]