Expert Toronto real estate appraiser Edward Saxe, has spoken about his experience during Toronto's last housing boom and bust cycle.
According to BBN, the real estate Veteran was working full time, during the housing boom of the late eighties. Saxe experienced the bust following a family home in North Toronto in 1989 closed deal with the founder of Edjline Appraisal Services. BBN quotes what he said," I bought my property in October, moved in in May and between the time I purchased and the time I closed it had probably dropped 25-to-30 percent in value,"
Saxe said that it was the worst housing bust he could ever remember. Prices in the Greater Toronto Area dwindled to record lows during the period between 1989 and 1996. Some communities saw prices cuts at 50%. It would take 10 years for Toronto to see the prices soar again to its peak levels.
Since the start of 2015, Toronto housing has already been considered by the Organization for Economic Co-operation and Development at risk of severe collapse. What Saxe saw in 1989 and 1996 might possibly happen again.
Analysts are warning that Canada's housing markets could be entering a bubble once again. On the other hand, there are those who think that it could be different this time. The crash Saxe witnessed was propelled by recession in which Canadian unemployment has at its worse in the decade, which interest rates were raised by the Bank of Canada tried to combat inflation.
To those who believe that the crash is not happen again, its effects still haunt the present. For example, according to BBN, CIBC economist Benjamin Tal agrees there is little chance for that same crash to happen in this era. But he told BBN that, "When you chase inflation you overshoot and you kill the economy."
