The Motria Group's Market Blog: Fears by some of a subprime mortgage collapse

Monday May 01st, 2017



Fears by some of a subprime mortgage collapse leading to a larger crisis could cause temporary uncertainty and hesitation in buying. The news in the media about Home Capital combined with the new government regulations, could cause a certain level of cooling off in the overheated Toronto real estate market. However, I have myself not seen indicators of a collapse within the diverse market that our group services. My buyers and sellers are not overextended and they have debt loads that they can service. This leads me to believe that prices have risen simply due to huge demand and low supply and prices are subsidized by real money. Flattening of prices may happen, but as of yet, I am not seeing a complete collapse.

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