Two big banks are waving red flags about Toronto housing prices, calling them “simply unsustainable” and a “bubble” in separate reports.
The Canadian Real Estate Association said this week that average house prices across the Greater Toronto Area hit $727,300 in February, a figure that has risen by more than 23 per cent in the past year.
The group said hot activity in and around Canada’s largest city is “without precedent” and that it’s skewing the national average higher.
“It’s pretty much the best time to be selling a Toronto home in at least 30 years,” BMO economist Robert Kavcic said, noting that activity in neighbouring regions are being impacted.
“The strength now also spreads as far as Guelph and Barrie, where average prices are pushing 30 per cent year over year [and] even London and Windsor are seriously gaining momentum,” Kavcic said. “Supply-side fundamentals have been left in the dust.”
Much has been written on the difficulties that new buyers are having in the Toronto area, and Kavcic’s colleague Doug Porter expanded on that notion Friday morning with some hard numbers to show just how “other worldly” prices have become.