New Home Sales in Toronto Hit Lowest On Record As Condo Prices Near $800K revealing the GTA Housing Scam – February 3, 2019,

Canadian leftist politicians will really catch a break with Donald Trump when this housing market crashes, well that is if Donald Trump is President when the Canadian market does crash. What’s beginning to happen in Toronto is well people are catching onto the scam, the scam is the condos being built are not being built based on demand and what you’re getting in the Toronto condo market are a lot of speculators, the assumption but speculators of the Canadian housing market is that when the housing market crashes they’ll be a Government bailout, the creation of the CMHC and many of the options already in place are proof of this.

My thing and this is where things get interesting is that Canada has become very reliant on imports, so there’s only so far the Canadian dollar can go. I’m not sure what to make of the Canadian dollar right now to be perfectly honest, the Loonie is being propped up and it’s being propped up primarily because the assumption of the market is that the Canadian dollar has always been relatively strong, so in the end, the government will make the right decisions. The interesting thing is if the government and BoC make the right decision there’s going to be a serious housing crash in Canada, that will be triggered by the BoC being forced to raise interest rates.

The Canadian consumer has tapped out, they tapped out around 2017, there’s no new money, the capital flowing into the Canadian economy is foreign capital and because of all the supply management-type price controls already in existence in Canada mass migration can’t fix this problem. Newly arrived immigrants that will eventually become Canadian citizens also get to benefit by price controls like the minimum wage etc. What this ultimately means is that the there will be no deflation without free-market changes to legislation and quite frankly I’m not sure Canadians are ready for that truth yet.

I’ll be voting for Maxime Bernier is this coming election, but if Trudeau wins, I will have a snarkily smile on my face, because this coming crash will be on his watch. Brian Mulroney spent his entire time as Prime Minister trying to correct the disasters created by Pierre Trudeau, the problem with Brian Mulroney is the same problem Andrew Scheers Conservative party has now, they’re not willing to level with the Canadian public, that price controls these silly crown corporations like the CMHC will not work! taxpayer dollars backing residential and commercial mortgages? Are you serious> The CMHC using taxpayer-backed dollars to give the Federal Government? Do people think this strategy is going to work long term? Even if this made to stimulate economic growth in the housing sector, you mean to tell me that you’re never going to take the training wheels off the bike? Do you mean to tell me the CMHC is a permanent mortgage ensuring stimulus package?

Why I like Leftist, many of them put little emphasis on the Free market and instead take the Keynesian approach when they’re writing articles, so they inadvertently reveal things that investors like myself use to profit. The Huffington Post article that you can read by clicking the link below states the following:

There were 25,161 new home sales in the GTA in 2018, the lowest number in records going back to 2000, according to data released Friday by the Building Industry and Land Development (BILD) Association.

That statistic looks even worse when considering that Greater Toronto’s population has grown more than 26 per cent in that time.

Toronto New Home Sales Hit Lowest On Record As Condo Prices Near $800,000 – The Huffington Post

Now did those words simply fly over your head? By the numbers did you know that Toronto per capita doesn’t have the worst homelessness problem in Canada? When someone moves out of a rental apartment doesn’t someone else move in? So if this condo market wasn’t fueled by demand who or what is fueling it? could it be that the Government intervention is the problem?

Bank of Canada eyeing high consumer debt levels as it ponders hikes: Wilkins – Reuters

I want to remind the reader that the Canadian housing market didn’t crash to the degree that U.S housing market did in 2007-2008, in fact Canada came out pretty good and the main reason is because Canada is more stringent on who they lend too, the regulations to qualify for a residential mortgage have actually gotten worse since, but qualifying for mortgage as speculator, investor has actually gotten easier, there are people in Toronto making moves to change the very make up of Airbnb because the Toronto housing market is so infested with scams that Airbnb prices in Toronto are making a joke of the Condo and housing markets.

I can see this stuff clearly and my investments are based on a few scenarios that are inevitable. People are people and because Canadians have this obsession with allowing the government to pick economic winners and losers I see that Keynesian solecistic vision being challenged very soon.

Interesting times ahead.