Some weeks ago I alluded to an email thread circulating among various Toronto real estate ‘experts’. The term was so loosely defined that it included me.

The editors of a swishy magazine in the uppiest-scale part of the GTA Republic wanted an update on a forecast piece done last winter. So instead of taking us all to a fancy lunch and transcribing our thoughts, they made us do the typing. Welcome to the new media reality.

The subhead chosen for the page was a portion of one of my comments. “So, was I wrong?” I wrote. “Duh. Of course I was wrong. I actually attributed common sense and rational thought to the people of Toronto.” As you know, I was sure the residential real estate market would wither under the weight of unemployment, crushed family finances and recessionary caution. But, no cigar.

Instead the Bank of Canada decided to crash interest rates to nothing, encouraging massive borrowing by people I thought were already hideously indebted. The real estate industry reignited its marketing machine, irresponsibly telling people prices would rise forever and they must buy now while rates were low. And the cash-starved media decided to sacrifice its last ethical goat on the altar of lineage.

As a result, we got news like this week’s. Resales in Toronto surged by 27% last month and prices romped ahead 7.5%. Across the country sales jumped by 18% and home values bounced ahead 11%. So, in August of 2009 a home is officially the most expensive ever.

Over the last couple of weeks I have published details of some of those recent sales. Typically they have been consumed in bidding wars between inexperienced first-time buyers whacked out on money borrowed at the lowest VRM rate and with the longest possible amortization. Won’t bore you with my thoughts once again. But it’s not too hard to see where this is going.

For now I will assume the dunce’s chair in the corner. Go ahead. Hurl your tomatoes and invective. I can take it.

But, my fellow experts, don’t get too damn smug.

So, here’s the article. Right-click and select ‘view image’ to enlarge. Or get glasses. (Or go here.)