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Yes its a bubble !!!

Housing prices are created by supply and demand. Before September of 2008 if you had good credit you could buy a house with 0% down. When this new condition was introduced sales sagged. Now you need 5% down to buy a house. The Toronto market had a mini adjustment between August 2008 to Spring 2009.

At the current house prices the average being say $382,000 less 5% down of $19000 gives me a mortgage of $2122.06 with no property taxes included.

A couple would have to make about $80,000 a year to qualify add another $10,000 in income to qualify for the property tax portion @ $300 per month

The average family income is $71,000 in Toronto. There is an affordability gap of about $20,000.

My old dad says if two people working full time cannot afford a house the prices must come down.
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