Comments on: Are Toronto Home Prices High, or Is Canadian Money Becoming Worthless?

By: Uptown Apartments

Uptown Apartments — Mon, 08 Apr 2019 13:34:37 +0000

Well worth a read. Got great insights and information from your blog. Thanks.

By: GTA Real Estate News Highlights: #2 | Torontoism

GTA Real Estate News Highlights: #2 | Torontoism — Fri, 09 Jun 2017 08:58:16 +0000

[…] Better Dwelling: Are Toronto Home Prices High, Or Is Canadian Money Becoming Worthless? […]

By: Jon

Jon — Wed, 07 Jun 2017 20:15:01 +0000

Until we get paid in gold, it’s a false argument. Gold is imperfectly priced – it fluctuates up and down in real terms. It could easily fall in price given that it is high historically speaking.

Homes are bought with mortgages. Mortgages are secured with incomes. You need to look no further than the size of mortgages being approved in Canada. They are huge. Demand for insured mortgage-backed securities is immense in this low interest rate environment, and with demand that high, it means some mortgages will have to be high-ratio and riskier.

The problem is that housing is a necessity of life like food and water. The federal government has deliberately stimulated housing to serve its own purposes. It’s morally wrong.

By: Dylan

Dylan — Wed, 31 May 2017 14:51:45 +0000

There is one important element missing from this analysis: average incomes.

What would the result be if you converted home prices AND average incomes into gold (in 1989 and present) and then looked at how out of whack home prices are to incomes? I bet the results would be worse today than 1989.