The real reason Toronto New Condos Sales Hit a 9 Year Low in 2013

If you’re wondering why the Toronto New Condos Sales Hit a 9 Year Low in 2013 the reason is simple. The mortgage and housing markets in Canada as a whole are being propped up by our Government supported, Canadian tax payer backed, mortgage backed securities program that’s causing the housing markets all across Canada to rise in value.

CMHC the CANADA MORTGAGE AND HOUSING CORPORATION has a program in place that initially was created to help more Canadians become home owners has back fired and what’s really happening is it’s cause an influx of buyers into the Canadian housing market that’s caused housing prices to increase drastically. At the moment in January 2013 the Canadian dollar is decreasing and nobody is talking about the reason why. Truth be told our dollar shouldn’t be decreasing however our housing market is in some serious trouble and being that mortgage debt is our largest debt the Canadian dollar isn’t looking as great as it once did.

Condo’s have always been a foolish investment and they only make sense if you’re an investor looking to rent out the condo unit or an a fluent individual looking to retire. Being that the rent investors are trying to charge for vacant SMALL condo units THAT nobody wants are ridiculously high investors Canadian and foreign are reluctant to purchase Condo’s in Toronto.

Can someone say Bubble? No of-course not nobody wants to talk negative about the Canadian housing market even though anyone looking at it from a far can see it’s in serious need of repair. The prices for Toronto condo’s aren’t justifiable and the banks and with a declining Canadian dollar what’s going to happen to our housing prices next?

The CMHC needs restructuring and they need to do it fast I’ve already written about this and this is a serious problem because we live in a global economy and tax payer backed mortgage program has never been something I’ve agreed with!