In recent months, Canada's housing market has been described as a "bubble," an economic turn referring to a steep price increase shortly before a huge collapse. Bubbles can be dangerous for real estate markets especially, because the devaluing of a home could mean that homeowners end up owing more than their house is worth.
In cities like Toronto where the real estate market is hot and prices have surged in recent months, many economists have warned that the growth is unsustainable and the market is primed to collapse. However, not everyone agrees with this assessment, reports Bloomberg. Gordon Nixon, CEO of the Royal Bank of Canada, recently came out to say that the talk of a bubble was overblown.
"When we look at the overall marketplace, there might be pockets of vulnerability but we remain quite comfortable," Nixon told the news source. "Frankly, I’d like to see the rhetoric come down a little bit."
Nixon isn't the sole voice of dissent. Both the Canada Mortgage & Housing Corp. and the Canadian Association of Accredited Mortgage says there's no real evidence that would indicate the market is in a bubble phase.
While analysts disagree over the bubble, most homebuyers are simply concerned with rising prices. One way for buyers to save money is by renting in a cheap Toronto self storage facility. This is an affordable way to save money on extra space without breaking the bank.
Self storage can be a smart way to hang on to valuable items without taking up room in a house or apartment. For Toronto storage solutions, there's no better than Jiffy Self Storage. Those interested in self storage should check out the affordable rates on Jiffy's website, where they can also enter to win a free iPad 3.