The Toronto real estate bubble might have finally popped
Economists are in a tizzy right now over Toronto's housing market as home sales continue to slump and the word "bubble" repopulates our RSS feeds.
Could it finally have happened? Is the real estate bubble gone? If so, it seems to have popped pretty quietly (unless you count Facebook chatter as noise.)
"This is a late bubble. Bereft of life, it rests in peace," wrote BMO chief economist Doug Porter last week in a note to clients, blaming the death largely on new rules implemented by the Ontario government in April.
Porter also told CBC's Metro Morning on Friday that we've definitely popped the bubble.
"By any traditional definition, we were in the grips of a full-on bubble earlier this year," he explained. "I didn't expect prices to drop 13 per cent in four months, which is what we've seen."
So, will the bubble deflate even further? Can it pop again? I'm not really certain, but the buzz around this topic seems well worth paying attention to.
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