The chief economist of BMO Captial Market said that we should not fooling ourselves and just admit it that Toronto and surround area is in a housing market.
"Let's drop the pretence," Douglas Porter wrote in a commentary. "The Toronto market — and the many cities surrounding it — are in a housing bubble."
Prices have been going up in Toronto by 22.6% in January from a year ago and household income has not gone up by that much at all. Eventually this party is going to stop, but let's be honest here too, the Government of Canada will not let that happen.
What do you think, is the BMO chief economist correct and why he is saying this now?