Biggest housing bubble of all time? | Analyst on risks in Canada's real estate market

MRB Partners' Phillip Colmar explains why he thinks Canada's real estate market is in a huge housing bubble and what key factors could cause it to pop.

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[Shiftingdead]

Pricing of buying a house and renting prices are way too expensive for the income of regular families, that's the problem.

[nicolasbenson]

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

[KO-dzzj]

Canadians spend most of their income on rent or mortgage, this country is super opressed.

[mik]

Imagine paying $3k in rent on a regular salary. That’s not sustainable

[Nelson-ywqx]

Hit 200k today. I'm really grateful for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in June 2022<<

[jmjm]

It's long overdue. it's time to pop the housing bubble in order to have affordable housing prices.

[SpecialEdDHD]

Fun fact: 40% of condos in Ontario are owned by investors.

[TruthHearts]

Million dollar homes plus high interest and income ratios DOES NOT ADDS UP!!’ BUBBLE ABOUT TO BURST!!

[dougpatterson]

I don’t want to say “I called it” as i really didn’t expect it to get this bad. I did see a problem with home and land prices increasing faster than general inflation well before I intended to buy one myself.

[donadams]

Every bubble bursts, the question is when and by how much. Canadian interest rates rose to 23% in 1981. The 5% rates of today always have the potential to go much higher.

[sumeshjoseph]

I am hearing this since i came to canada 20 years ago.. What a joke

[thamesvalleypainting]

It wont burst! It might drop 500k for houses in GTA & Vancouver on 1-2million doller homes, but that’s only in those major markets, and nowhere else is going to see much of a drop, maybe 100-150k

The government, banks, builders, developers, agents, etc everyone is doing anything they possibly can to not let this market naturally crumble, as it should. It’s being artificially manipulated in propped up by the government banks builders, and anyone that can continue to make money off Canadian real estate.

It’s criminal at this point

[skinny]

Average household income 97000. Average home 650000. Who is buying these houses? Not an average Canadian.

[DarrenVoros]

What he forgot to mention was the lack of supply. That's what will keep the market on its current path. Pricing might correct a little but it won't burst until there's a huge new supply of housing. This won't happen anytime soon.

[djdrisco]

Ladies and gentleman, introducing the 40 year mortgage.

[audiecenteno]

there is housing shortage. strong demand from high immigration but low supply. Prices will continue to go up. Theres no bubble bursting. How can price can collapse when theres strong demand for the product?

[attananightshadow]

Weird, houses were affordable under Harper and unnecessary immigration was also under control then too. It’s almost like this current regime is purposely incompetent

[tomtomsworld]

There will be a slight correction, but prices will never plummet. Sorry to burst YOUR bubble 😛

[davidgutnik]

Why do agents advertise sold over asking? That just advertises that you didn't know the market and asked too little.

"Sold over market value" that's a advertising point!

[surpotel]

These so called Self Proclaimed Experts need to get their heads checked. Most properties in major Canadian cities are owned by investors who own mutliple units