As home prices in Toronto continue to climb, many are wondering if Toronto is experiencing a real estate bubble. While no-one can give a definitive answer, economist argue that Canada is one of the safest countries to keep your investment today as Europe and USA have significant economic and government debt issues still to play out over the next few years.  Thus it is very likely interest rates may stay relatively low for prolonged period of time due to the situation in the US. This may continue to drive investment into Canada for the immediate future.

Many Torontonians remember the Toronto real estate market crash of the late 80’s - early 90’s and fear the current market may be due for a similar fate.  Some fundamental differences do exist:

1) The current home prices in Toronto are far more affordable than in the late 80’s and is inline with-in a normal range

2) The overall trend line for prices has been consistent over the last 15 years and the current market prices are inline with the trend

This entry was posted on Tuesday, June 15th, 2010 at 12:14 am and is filed under Real Estate Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.