The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and demanding bidding wars. You can blame foreigners bringing their yen or rupees here. You can blame the high demand and low amount of housing all you want.

Its the banks that have created this supposed bubble and now they are scrambling to find a way to put a cap on it before they get screwed with a bunch of foreclosures like ten years ago down south.

The reason why they keep coming up with stupid regulations every few months is that for the last few years, they realize they cannot cap this freight train too fast because that would completely screw them over. Pulling back too much would lower prices so fast, people would walk away from their mortgages.

The way they created this mess was to get involved in a low interest battle among themselves. This was to combat what happened to the US market in 2008. While we did have a market that did slow down, they didn’t want it to become what happened in the US, so they lowered and lowered the interest rates.

The next thing they did was allow foreign buyers to use their money to buy houses with loopholes. (They since have changed those rules)

The banks also allowed people to use the equity in their house to purchase second and third properties, and become landlords. CMHC helped a lot of people buy these properties. (These regulations have been tightened as well)

What the banks did was to finance home renovations, and home renovation companies. This allowed everybody who watches HGTV to become all of a sudden brilliant and renovate a home, then then they could hide behind the CRA tax codes. The banks also allowed foreigners to use their money to do this as well. Not just domestic companies. (These rules have been tightened as well)

After all of their helping out the housing market, and record profits, they started to do some analysis, and started to realize that while the prices of housing has shot through the stratosphere, their liability is up there as well. So now they are coming out with reports and reports, and news articles, and new regulation after regulation to try to calm this bull down. The problem is, bulls down go down easy, and neither will this one. Run too slow or fast and you’ll get the horns. Either way, its their fault for being greedy and blaming other factors, but that seems to be the normal thing to do now.


Virtual Staging

There has been a lot of advances in technology this year, and one of the areas is virtual staging. It has come down so much that some agents are looking at this as viable alternative to staging, rather than have the place look empty on photos and videos. In my...

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Price Drop 30% put into Perspective

The prices of sales in the GTA have come down 30% from last year. Let's put this stat into perspective. The prices from January to April sky rocketed and then came down after that. Of course they are going to be a lot lower since the prices jumped so much. The media...

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Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

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The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan...

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Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

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Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

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Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

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Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

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Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

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Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

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