The Bank of Montreal warns that the rapid increase of Toronto home prices could potentially pose a major economic threat, reports The Globe and Mail.
In a recently-released economic forecast for North America, the financial instution pointed out three "risks.” These risks included those from emerging markets that are struggling, the ongoing fight over the U.S. government debt ceiling and the state of residential real estate inventory in Canada’s largest city.
BMO senior economist Sal Guatieri noted that "accelerating home prices in Toronto risk straining affordability further, causing a correction when interest rates normalize and the market is trying to absorb a record number of newly-built condos."
This commentary comes hot on the heels of last week's Toronto Real Estate Board report, which showed that average selling prices surged more than 9 per cent to $526,528 in January, as compared last year's statistics. Additionally, the "benchmark" price increased by 7.1 per cent in January, Guatieri said while warning that Toronto's price growth is rapidly outpacing family income.
By WM | 20 Feb 2014
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- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
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