Toronto Condos Prices Just Keep Going Up

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Toronto Condos Prices Just Keep Going Up

Toronto Condos and Estate homes decided this week to most ignorantly ignore the North merican house pricing trend and in a dramatic reversal have simply decided to arbitrarily increase their value. That’s the headline and if it wasn’t for the implication that houses have minds of their own, it would almost be believable since the reality of the situation really isn’t far off from this headline.

Unless you have been living under a rock ( and a pretty big one at that ) it would have been hard to ignore the financial crisis of 2009 that caused the G8 to morph to the G20 and which finally exposed the toxic nature of the US Mortgage situation.

Btw, the G8 is trying to figure out what its new role is since the G20 now appears to have taken over much of what the G8 group of countries use to hold as their exclusive domain. The breakdown, as many of you know know, was primarily caused by 2nd and third tier lending institutions in the United States who basically gave mortgages to nearly anyone with a pulse.

There were large families ( with many pulses apparently ) having little income to support their loan applications who got not one nor two but sometimes as many as 3 mortgage loans approved. Like I said, you really only needed a pulse and a valid drivers license and some would dispute whether you needed the latter at all.

So house sales went through the roof in a 10 year upward climb in which a 200,000 condominium climbed to 275,000 then to 325,000 et al until 8 years later it was being remortgaged at 600,000 while a fleet of Cadilacs and SUV’s lined the driveway.

The mortgages were bundled into fixed asset allocations and resold from the original third tier lender to second tier lenders who bundled in some better backed mortgages and then on to first tier lenders who repackaged them, mixed in a few more securities and whom then resold them internationally.

This isn’t quite the definition of a ponzi scheme but to when a european bank finally called the bluff and demanded payment the entire house of cards started to fall.

Controversial action on the part of the US Govt coupled with European, Japanese and then G8 emergency action managed to stave off a complete collapse of the banking system but so far as every
one was concerned new house pricing had collapsed entirely.

Yet here we are, just 3 measly months later looking at the realestate picture and realizing that there are at least 3 really bright realestate communities in the US in which house pricing not only didn’t collapse but have held steady and big surprise – Toronto’s Condominium and Estate Homes ( those over 600,000 ) have not only NOT collapsed but are inching skyward month over month.

What really is going on in Toronto?

By: TrevorW

Article Directory:

Toronto Condominium prices may be about to enter the turbid zone called the “Perfect Storm”.
Click here and found out why Estate Homes and Toronto Condo prices are about to skyrocket. What should one do, if such a thing were really true?

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