As you watch this report, remember that bank economists are required to temper their reports on financial risks, and understate downside forecasts, so as not to scare off customers from their bread and butter investment underwriting and sales side. But if you listen between the lines of the placid delivery here, there is some interesting info for the time capsule.
A new report from TD examines the level of speculative buyers in Toronto housing, and finds it might be worse than previously thought (or admitted?). Their conclusion: housing is divorced from fundamentals and some 24-40% overvalued at present. Existing home sales per person are now at a higher level than the peak of the 1980’s price bubble. (Before values collapsed by 25 to 60% in many areas, sending the economy into recession and a host of realtors, lenders, speculators and households into years of financial and legal problems.) Here is a direct video link.
Also see: Investors now speculating on single family homes across the GTA.
;
