Weird But revealing statistics: Ontario’s population decline equates to Toronto’ Housing Market Surpassing Vancouver, Toronto is officially Canada’s most expensive housing market – February 7, 2022,
In December of 2021, data revealed that Toronto was actually losing people, actually, the data showed that all of Ontario was losing people, but Toronto lost the most people in Ontario, this was widely published information, I pointed to the reality that a lot of wealthier Ontarians had left Canada for the United States, because of Justin Trudeau’s response to Covid-19.
Now the data in my opinion wrongly suggested that people moved from Ontario to another province, but I’ll leave that topic for another date when those statistics come out about how many Canadians flocked to Florida and the other U.S States. You have to remember that a lot of Canadians travel back and forth between Canada and the United States, and the truth of the matter is, if you have the money, you don’t have to reside in Canada if you don’t want to and if you’re going to get top dollar for your residence during peak Covid-19 lockdowns, why not sell?
Toronto’s Population Declined So Much Recently That It Actually Set A Record | narcity.com
But anyway, the bottom line was people were leaving Ontario, which one would assume would equate to a market sell-off in the Toronto Real estate market, but no, similar to New York City, which also saw increases in housing prices, the Toronto market has since shot up, as the expectations are that inflation is here to stay and this equates to more perceived security for real estate speculators.
Toronto records highest population decline in decades as urban exodus continues | blogto.com
Prior to Toronto having empty condo properties all over the city, Vancouver was known for having empty condos, in fact, in certain parts of Vancouver, certain areas with an abundance of condos look and feel like ghost towns during certain parts of the year. People with the money to do so, park their money in Canadian real estate, I point to Canada Mortgage and Housing Corporation(CMHC) as being the fuel for these speculators.
CMHC has a mortgage insurance product that is backed by the government, meaning that if the market crashes, it’s more than likely that The Federal Government and the CMHC will bail out the housing market. Although the CMHC is Canada’s wealthiest Crown Corporation on paper, it’s actually Cabada’s most indebted crown corporation if Canada’s housing market was actually a fluctuating market.
Because of the Federal government’s involvement in Canadian real estate, it’s a safe bet for real estate speculators to assume housing prices will not crash. Therefore, I suspect housing prices in Canada will continue to rise higher and higher until they can’t anymore. In Toronto, as an example, they’re reluctant to raise property taxes, because of the devastating effect it could have on people’s cash flow. When does the madness end? I don’t know, I suspect the crash happens when bankruptcies start accelerating because the cost of living and wages are completely out of whack!
You have to remember that f the private sector raises wages, consumer prices will rise and if the government pushes for price controls, similar to the minimum wage laws, Canada might find herself with fewer job creators. A lot of the economic signs are pointing to an economic recession, that will lead to depression, and the worst part is that we’re already near zero percent interest rates! Typically during a recession or a depression, the first thing that happens is that the central banks drop rates to zero, well during the “good times” interest rates we’re at zero. Do you see the problem on the horizon?
Move over Vancouver, this is Canada’s most expensive housing market now, says RBC | financialpost.com
Interesting times ahead!