Only Months Left Until This Bubble Finally Bursts!

Historical data shows us this time it's Canada's turn for a significant downturn and crash in our real estate market. Major technical signals all point to an upcoming recession and declining house prices. #yieldcurve #housingcrisis #realestateinvesting #news #housingcrash #realestatemarket

Market Mania Yield Curve Video...

[sarawilliam]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[vicibib]

Really good show today!
I'm old enough that I lived through all of those recessions and also the 70s inflation and 80s foreclosures.(Which I think mirrors this one).
I bought my house in Abbotsford, BC in 1996 for 128k in 1996, the fellow I bought it from bought it in 1981 for 112k. It only really went up with the rate of inflation.
That's what a normal market was, and that's what we counted on for retirement.
Nobody planned on their house being their entire retirement, whoever says that is lying or was planning on a humble last stage of life.
My house is worth over a mil now, but I only planned on it being worth 400k tops.
And that's the same expectation as all my peers.

[clintyiu]

rate cuts are to boost a sagging economy to avoid a recession... not because inflation is under control like the politicians say.

[zbuisql]

I put my house (in BC) for sale August 2022. Because I did "for sale by owner" the process was probably a little slower, the sale was finalized January 2023. I've been renting ever since. I'm hanging onto that bit of $$ waiting for a correction. I know many realtors, and they've all told me I'm wrong, and that there is also a supply issue. But I'm holding strong waiting for the dip. Previously people had been buying houses with little downpayment and had low interest rates. We have huge debt per capita. Those things have to come into play at some point here. I don't know how so much immigration or lack of supply will affect the dip, but personally I'm digging in, waiting it out. (Or, maybe I'll go retire in Indonesia, there's always a plan B.) Great video, as usual Jon. I appreciate your perspective.

[nickcheema]

another informative update from Jon Flynn. Many sellers in Canada think it's Jan/Feb 2022 with their asking prices. The Great Canadian Real Estate Train Wreck is coming to a neighborhood near you while the government and the BoC orchestrate a race to the bottom on interest rates. When you see mass layoffs, who's going to be buying homes?

[lawrencehalpin]

Thank you Mr. Flynn for keeping us so well informed with the real estate market. God bless you.

[brianponcelet]

Bang on the data doesn’t lie. I think why people are confused is because real estate doesn’t whip up and down like the stock market. It moves slower…so the downturn will likely be years. Great job Jon!

[stevewoitas]

Thanks for the great research and commentary. In Haliburton, I have observed cottage properties sitting on the market and not moving. Some for more than 9 months. Some have changed agents 3 times.

[Spirit-FilledMindset]

We are currently in a depression. Have been for over a year. The recession was in 2022.

[alsmart]

Excellent video Jon. In your next video can you show a long term chart of Canadian Average National Home Price with an overlay of Annual Immigration numbers into this country? It will be a clear visualization how an insanely excessive immigration policy (coupled with insanely low mortgage rates) over the last 15 years has helped artificially create this epic housing bubble.

[samuelgit]

you are correct. people who are making 90k they can get mortgage of 250k which is nothing. image what is going to happened when they have to renew. I guess next year housing will crash 20% or more.

[jordanb]

You're terrific Jon, appreciate the effort you put into providing this information, very valuable.

[sherylsauder]

why would any seller sign for longer than 3 months and then roll it? 6-9 months is nuts

[steve]

Regardless of the irrevocable clause, the brokerage shouldn't be so petty. If he/she is owed for staging/photography ask for that money back and let them go. That is a sure way to lose any future business or referral.

[bc]

Where did the media and general public get the idea that rate cuts are a positive indicator?

[josephlim]

I’ve sold my condo last year. I saw the number of cranes and came a conclusion, condos are going to take the biggest decline in this upcoming down cycle. With inventory hitting 10 year highs, I’m certain lower prices will follow. Just takes time. Every homeowner who’s feeling the pinch has a breaking point. They’ve come to the conclusion they have to sell but are prices way way high. Trying to maximize their bank account to pay for rent.

[richardb.]

Too many of those channels have been saying for years that the market is going to crash. They all have been wrong. Will some people be desperate to sell? Sure. But mostly, it's those people who overpaid by desperately over bidding on the property of their dreams. They stretched themselves too thin and are now panicking to sell like they panicked to buy. But there is no crash. Too many people are desperate for lodging. Prices may go down a bit, but no crash...

[Redmapleleaf]

Wow. I just refreshed and your comments went from 50 down to 42.

[rockglen]

I can't believe the amount of work that you must put in your channel. Thank you for your research-based observations and conclusions. So refreshing!

[austinbar]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?