Quote:
Originally Posted by Slava
And I do wonder how much of the runup (which seems to have ebbed to some extent) was Canada "catching up" with other places around the world? People want to live in Toronto and Vancouver. It's expensive to live in cities that are desirable to people around the world. I realise as a Calgaruan that seems odd (I personally wouldn't want to live in Toronto), but people from the UK say the same thing about London, and I'd live there in a heartbeat.
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There's catch-up and it's fair for Toronto and Vancouver to be the most expensive markets in Canada but I don't think they can be compared to (or sometimes exceeding) the likes of London or Seattle/SF which have much more wealthier people, higher average/median incomes and are more important globally.
I still think Toronto/Vancouver's markets are less supported by fundamentals and will eventually correct significantly as the cost of borrowing starts to bite. Canada getting through the 2007-2008 US housing bubble bursting relatively unscathed probably has turned out to be a negative since it reinforced the moral hazards of housing speculation.