Is Canada's housing bubble finally popping? | The Big Story Podcast

Or was it never really a bubble in the first place? What we know right now is that sales are falling, prices are dropping (slightly!) and some investors are getting out. What we don't know are the full ramifications of rising interest rates on a market that has been white hot for more than a decade now.

Over the next few months, we'll see if this is a correction, a cooling or a crash. What will that mean for home owners? For aspiring buyers? For those stuck in a tough rental market? And even, yes, for people using homes as investment properties, which helped drive the market to such incredible highs?

[newlife]

It matters not whether it's a bubble or immigration-driven demand, the prices are insane....especially for younger people. Shame on the gov't for allowing immigrants to buy homes at the expense of those already here! You do not allow newbies in just to see them compete with born-and-raised Canadians for housing! Shame on the baby-boomers for greedily investing in the bubble at the expense of their own children! Shame on those greedily flipping homes at the expense of others. Tent cities are the result of this massive greed and entitlement. The gov't and others had no motivation to fix the problem as long as their homes were rising in value ASHAMED OF THE GREED THAT HAS DRIVEN CANADIAN CITIZENS TO THE STREET!! The Ford gov't in Ontario only got back into power because the middle class suburban home owners were so delighted that they did not even really have to work to have an income!

[jjjj]

I don't know any first time buyer who possibly afford more than a condo in the GTA. And the price of condos have not gone down, the majority of them are owned by foreign as well as domestic investors, who are simply keeping them on the market longer, instead of selling them in 2 days they are being kept on the market for over a month, and then if they can't get 700k for a tiny 1 bedroom condo in the GTA, they take it off the market and continue renting it for 2400 a month, almost a grand higher in rent over 2 few years. So for all practical purposes, house prices have not gone down, and rents have gone up by almost a grand in about 2 years.

I am sick of hearing about the housing market going down, how did it go down? It still costs 700k closing cost to buy the cheapest 1 bedroom condo in the GTA. You need 150 grand in your back pocket as downpayment, and you need to make at least 120 grand a year to get approved for a mortgage, and then you need to pay 3 grand a month for mortgage and maintenance fee and property tax. That means virtually nobody can afford to get into the market, and on top of that they are shut down for longer as their rent as well as inflation eats more into their savings. So I am sick of hearing the false myth that just because some already ridiculously inflated detached goes from 1.5 to 1.3 million that means housing prices crashed because it went 200k down.

[jimmybaggs]

Prices have dropped ~20% since the peak in January… On what planet is this a “slight” drop in prices?

[bpatel]

I support housing price must go down or crash because people still living in basements or with parents after 25 years of age. Quality of living went down in canada 🇨🇦. All Canadian need home for live with peace . Hope government understand this

[newplayer]

Very interesting! Thanks for uploading!

[markz]

Get rid of investors and all problems will be solved.

[automategames]

whats happening is that houses are too expensive and rent is shooting trough the roof... we are looking at mass homelessness and poverty soon... while the lucky that got in the housing market before the rise just simply got lucky...
the haves and the have nots will clash sooner or later.

[batralawgroup]

Falling 60-70% will still
hardly touch pre pandemic prices, politicians and media will never let happens it even as they all have their stakes there.

[kevinthompson]

We need auction style selling. Then we will really know the true value of a home now.

[ohcanadaeh]

Real estate investment is highly leveraged, getting into negative cash flow is easy than you think when interest rate is on its way up, especially when most has opted for variable rate mortgage.

[doinitforfun]

Preconstruction buyer's are trying to get out of their deals thru assignment, some buyer's don't qualify at the higher interest rates. Builders may possibly start offering (vtb) to close the deal.

[newlife]

My only question now is how is the gov't going to compensate the poor for the massive transfer of wealth from them to the investor class/home owners. How can a society work when one class is openly allowed to feed off another??

[donm]

Fix and flips are the worst houses to buy, do not under any circumstances buy one! this comes from a tradesman.

[thekings]

Nobody should buy untill next Feb. You will get your dream home at 50% discount

[JohnS-orhm]

Needs to pop or minimum wage should be $75/hr

[DnYD]

It’s going to collapse in epic fashion but the media would never let you know that

[gagsdoublej]

Excuse me Sir/Madam
Are you saved?
If you died tonight are you going to heaven?
Only Jesus

[dreamteamalliance]

People would rather cancel listings than take a hit, wishful thinking.

[lornecadeau]

I have seen this in the us 2008 high prices adjustable rate mortgage sounds familiar

[ejoo]

House market should POP, how else people could come with min.15$ per hour job come up with 20%down payment for 700.000$ small condo or townhouse (forget about detach house!) GO FIND SUGAR Dady or This is a BIG STRESS FOR YONGE PEOPLE SPECIALLY