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And Toronto is not alone. The average home price in the country soared to new heights in January and grew by almost This activity has been triggered by low mortgage rates, but the tide is expected to turn soon. Thankfully, his warning comes at a time when the Big Five and the government can still rein the market in.
Some people are drawing an analogy to the New Zealand market that was growing just as aggressively, and the government took measures to control the market. Sooner or later, the government and the big banks will have to step in to control the housing market. Right now, the growth and the momentum are significant drivers of economic recovery, but they should be controlled or they might become liabilities instead.
With a completely Europe-based commercial portfolio, Inovalis is quite far from the Canadian real estate market. One positive impact of these troubling income statements is that they have kept the company discounted and relatively undervalued.
The share price devaluation has also resulted in a mouthwatering 8. Once the housing market cools down a bit, you might have a chance of many other real estate stocks that are currently riding in their coattails at a relatively discounted price. Here's the Better Buy. Fool contributor Adam Othman has no position in any of the stocks mentioned. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.