Toronto home prices are steadying, amid dramatic year-over-year declines – May 3, 2018

If you want to read this article in full click the link below:https://www.thestar.com/business/real_estate/2018/05/03/toronto-home-prices-are-steadying-amid-dramatic-year-over-year-declines.html
I know i’m a broken record but I’ll say this again, the housing market can not be stagnant for extended period of time, it will collapse, prices for homes have to go up in Toronto, Vancouver and other overvalued markets. The reason I say this is because a large segment of the real estate market, namely the condo market revolves around real estate investment. A Lot of people view foreign real estate investors and forget that it’s not so much the foreign real estate investors causing the distortions in the market as it is domestic speculative investors. It’s the domestic real estate investors using foreign capital that have created this problem.

If property values go down while mortgage prices go up there will be a collapse, the Bank of Canada keeps talking about raising rates, well if they raise rates it’s a signal that housing prices may have to come down as less people qualify for homes. Sure foreigners and real estate investors might purchase this homes or condos to rent them out, but how high can rents go, how high can gas prices go, how high can the cost of living go before all of this stuff starts to unravel.

Again I’ll say this again the collapse is imminent, the question is how long can this government subsidized real estate scam last, I’ve been saying it for years it’s better they let it crash now, because if this continues the collapse will be disastrous, a lot of the condos in Toronto are already empty and they’re poorly built, aging isn’t going to be good thing for many of these condos and because they’ll be rented out or hoarded the structural damage won’t be shown until the money train runs out. This housing market better not remain stagnant or it will collapse!