Why Ontario prices are expensive…..

There’s a lot going on beneath the surface of southern Ontario’s wild housing market.

Realtors say there’s simply not enough supply, and that the provincial government should open up more protected land for development.

Federal policy makers, in turn, have been attacking demand with tax and mortgage qualification changes.

But Bank of Nova Scotia says there are least six things going on, which help explain the incredible price surge in Ontario’s housing market, now the centre of attention given the rapid pace of real estate inflation in Toronto and its surrounding communities.

“For many years, many economists, housing analysts, and interested observers have been flummoxed by the march toward greater heights in housing markets,” said Derek Holt, vice-president of Scotiabank Economics.

Read more….