The Real Estate Market is BARELY HANGING ON!

In the Bank of Canada's latest report on the indictors of financial vulnerabilities which focused mainly on the real estate sectors they warned us that the misalignment of house prices could lead to an "abrupt correction" in Canadian home prices. This weeks data back this up as recent September statistics confirms a slowing market that is barely hanging on. #marketcrash #realestateinvesting #housingmarket #crash #bubble #news

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[cmc]

Hi Jon, I would love your thoughts on what you think the market will do come 2025 once the new mortgage rules start for FTHB. I'm wondering if the only 'bottom' we'll reach is now, and 2025 will heat up because government doesn't let housing cool off. However, I'm not sure how a FTHB population can carry the load of a depleted economy with high unemployment and recession indicators. Signed, confused FTHB

[PaulKatrina.]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800k to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[kelvinjohnson]

The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I've seen. I personally don't see anything that extreme coming, but who knows.

[KentBrono]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!!

[JosephGodwillh]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

[HarunTosun-wgrc]

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?

[sebastiaanthijn]

But to be honest, it feels like people are exaggerating. Every time the market slows down, there’s this panic. It’s a cycle

[bc]

No buyers are waiting for rate cuts - more debt? No thanks. Only price correction will move this market.

[YashJadeja-tj]

Jon, the funniest thing I hear from Realtors is them confidently saying "first time home buyers are waiting for more cuts before they jump back on the market". As a first time home buyer, I have never been asked what is stopping me from getting in the market by these so called professionals. In my opinion interest rate of 2 or 4% does not affect my purchase as much as these crazy prices.

[MesutMilleliri]

I got out of the real estate investing market about a year ago. I think its time to get into the stock market for a while. whats the best strategy to invest around 200K in this current market

[nospm]

Here is a thing - who can wait more: people paying tens of thousands of interest per year or people on sidelines who make 3-5% on their savings while waiting for prices to become reasonable. Sellers had their five minutes, now they will need to let the greed go or get totally destroyed.

[Riggsnic_co]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[MilkovichT.Sandlers]

just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[markfox]

I sold my house in 2019 and by 2021 the price had doubled. There is no question that the doubling was artificial. The correct will be acute and severe

[benjamindavidson]

Housing crisis triggers a market crash or a financial crisis, it could send shockwaves through the stock markets worldwide. I’m worried about my investment of over $600K stocks. Is this a time to consider diversifying my portfolios?

[Jeffery-fe]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[marshferguson]

No matter what the government does to keep housing prices high, the market will decide!

[sukhpreetsingh]

People will not buy until the prices will drop to pre pandemic level. Cutting Interest rate will not make us buy because houses prices are way too high.

[IslandStyle]

I am with Remax on Vancouver Island. Every agent I talk to is essentially saying the same thing..."It's my slowest year ever." Lots of data suggests the same.

[byvrub]

What's funny is that one the one hand, people are complaining about housing affordability, and on the other hand, people are afraid of a housing crash. No one points out the obvious fact that, in order for housing to become affordable again, it HAS TO crash. Actually, anyone wanting to buy a home should WELCOME a housing crash.