Quote:
Originally Posted by Sylvanfan
Radley does make a point when he brings up the new buying products that were offered in Canada for the first time and how it also coincided with the hot economy, and lower interest rates. It was pretty much the perfect storm to create a real estate spike and it did lead to the crazy growth rate of the last two years. There is a limit as to what people can afford and with the new buying products people didn't waste anytime to run up to that limit. And like anything else...there were people who got to the party a minute late and followed their friend or connections advice to invest and got burned. Isn't the first time people made an uninformed investment and got burned on it either.
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This is absolutely right. The floodgates of new products opened at pretty much the same time as the economy was red-hot and interest rates were low, which created a bit of a firestorm which was simply not sustainable.