The Bank of Montreal is warning that the surging price of homes in Toronto may reflect a serious economic threat in the foreseeable future. BMO includes Toronto home values along with international factors like pressures on emerging markets and the U.S. debit orgy. Specifically, BMO says that if interest rates normalize (or go higher as most people might put it) then those who have counted on annual increases in prices of 9 percent will be hurt, as will the economy and a whole. Globe and Mail
