For those who aren't cheerleaders, the numbers matter...https://www.bloomberg.com/view/articles ... will-burst
Look at the divergence in real RE prices (chart below) between USA and Canada after 2009. Look at the last steep spurt in 2015-16. That's me selling my False Creek apartment.
For those who actually ask difficult questions, measure the ratio of the spikes in 1982 and 1991 against the base. Then, measure the spike from 2001 to 2017. Spectacular? That's the extraordinary loose monetary policy that's going to end. That's ETB's paper million.
AS the author (Ben Carlson concluded...
"The problem is that the home-buying experience is fraught with emotion. People rarely think about the characteristics of real estate as an investment when putting down roots and making the biggest purchase of their life. Once the herd mentality sets in these things take on a life of their own. In downtown Toronto, the average sale price of a detached home this spring was $1.2 million.
No one knows when insanity like this will come to an end. Bubbles are like an avalanche. The longer they build up, the worse they will be when they eventually destabilize.
The same is true of financial markets. No one really knows when or why bubbles come to an end, but eventually people come to their senses and the music stops. U.S. homeowners understand all too well what can happen to the economy when the housing market destabilizes. The timing is impossible to predict, but Canadians should be on avalanche alert."