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)
A 2 lb. cotton candy-colored lobster was discovered last November by a Canadian fisherman and it’s just making the rounds on social media now. The Portland Press Herald reports: Canadian fisherman Robinson Russell, 38, caught the lobster off Grand Manan Island in December and decided to donate the 2-pound crustacean to an aquarium in Saint […]
As the US-Canada trade war heats up, Canada finds itself in an asymmetrical battle, vastly overmatched against a country with an order of magnitude population advantage.
Look, we’re not all maple syrup lollipops and free healthcare up here. According to the CBC, a naturalized Canadian citizen was held against his will, without charge, for 10 months while immigration officials attempted to verify his identity. 47-year old Nigerian-born Olajide Ogunye moved to Canada with his family in the 1990s and, in 1996, […]
The Adobe Creative Cloud is home to a suite of editing tools today’s creatives count on to produce their content. Whether you’re an aspiring photographer, animator, or graphic designer, Adobe’s programs can help you in your creative pursuits, and with the Complete Adobe CC Training Bundle, you can come to grips with six of them for […]
Your pet might be photogenic, but getting them to stare long enough at your camera to snap that Instagram-worthy photo isn’t as simple as telling them to sit. Bribing your pets with their favorite treat, however, might just do the trick, and with the Adjustable Pet Selfie Smartphone Attachment, you can do just that while getting […]
The cybersecurity landscape is changing, and now one of the most effective ways to counter hacking threats is to employ another hacker against them. Commonly referred to as ethical hackers, these professionals use a cybercriminal’s tools against them, checking networks for vulnerabilities and patching them up before they can be exploited. The Certified Ethical Hacker Bootcamp […]