Bubble

Trouble

Canadian Style!

Toronto’s Epic Housing Bubble Turns to Bust

Home sales in the Greater Toronto Area (GTA) plunged 39.5% in March compared to a year ago, to 7,228 homes, according to the Toronto Real Estate Board (TREB), the local real estate lobbying group. This was spread across all types of homes, even the formerly red-hot condo sector:

• Detached houses -46.3%

• Semi-detached houses -30.6%

• Townhouses -34.2%

• Condos -32.7%.

The average price for the Greater Toronto Area (GTA) plunged 14.3% year-over-year to C$784,588. In other words, the average buyer in March a year ago is now about C$130,000 in the hole.

DYI:  Is this the canary in the coal mine for the U.S. economy?  Possibly I’ll have to keep a close eye on Canada along with other countries this maybe the start of the dominoes falling.

DYI