Canadian Real Estate to PLUNGE 24% - Oxford Economics - House Prices, High Rates, Canada's Budget

#CanadianRealEstate #CanadaRealEstate #CanadaHousing

Canada’s Real Estate Market is set to plunge 24% according to a new Report by Oxford Economics. With housing prices well beyond affordable for the average Canadian household, rising interest rates, and the Government coming down with new restrictions, we could see major reversals in the real estate market, according to the report.

The report warns that should conditions continue the Canadian housing market could experience a crash of up to 40%. The crash, says the report, could spark a 2008-type financial crisis, with the banks unable to recover without a major government interventions.

Links:

Posthaste: Canada's housing boom has been unprecedented; the fallout will be too, say these economists:

Canadian Real Estate Association: National Statistics –

Canadian Real Estate Markets Saw Prices Increase Up To $128,000 Last Month:

Trudeau government votes down promised ban on foreign home buying:

Trudeau Vows 2-Year Ban on Foreign Home Buyers If Re-Elected:

Home-buying intentions go back to pre-pandemic levels: RBC Poll:

Mortgage Rates:

Mark Mitchell – Mortgage Broker London Ontario
920 Commissioners Road East
London, Ontario N5Z 3J1
Phone: [phone] (Call or Text)
Brokerage Lic: 10464
Broker Lic: M16001479

Subscribe NOW for more Mortgage/Financial News/Videos.
Follow me on Social Media:

Commentary on this Channel should not be considered financial advice.

[mcphersonjohnathon]

They went up more than that in one year and most Canadians couldn't afford a home at 400k let alone over a million for a condo now. It would have to crash 70 percent to match wages.

[Corrinaxox]

Thanks for this video Mark. I am 30 and did all the right things. I got my masters degree and now I feel my life is on hold as I want to buy a home and start a family. This makes me hopeful that things will improve.

[tonyclampotte]

I'M NEW TO BTC AND I'VE BEEN MAKING LOSSES TRYING TO MAKE PROFIT MYSELF IN TRADING...I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET... CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?

[valerienikkel]

There has to be a correction, the rising prices are unsustainable.

[fitu]

But I can POSSIBLY say that we didn''t see this coming? Anyone with basic understanding of the ripples affect of the pandemic, trillions of dollars being printed, risk of inflation, gas prices surging, shortage of staff, of supply. I mean it's NOT rocket science alll this has a domino affect and it doesn't happen over night it comes slowly. I'm actually concerned to be honest. ....

[GenieOfTheLamp]

In the States inflation has risen to near 8%, and over 5% in Canada. Also with trillions of dollars being printed in just a few short years mainly due to the pandemic, I can't see real estate plunging 24%. Maybe a small correction, but 24% would be a dream come true.

[chrisborecki]

I think it’s going to follow last years trend .. slowdown in spring and summer months, and pick back up in the fall . I think the time to buy for best deal will be in the summer months with many on holiday

[Joe-mzdc]

A drop would be great. I want to buy.

[JohnS-orhm]

With rates rising 24% is correction is probably not much considering the wages.

[afzalshaikh]

I don’t think there is a double digit drop. Impossible within the amount immigrant’s coming in and the lack of supply. Plus with higher rates affordability decreases so everything under a million will still be hot.

[johnhenry]

Enjoy your content I'm a federal Londoner myself

[codenamezz]

Most buyers here in suburb Montréal come from Eastern Europe, Middle East, Asia or USA and houses are sold within 2 weeks with betting. So, even if it's cool down, it won't be to let Canadian buyers buy any of the houses in the market where I live. People from abroad will see it has a bargain. Alot of countries have the same housing problems 😕. We are not alone.

[sanchivansivadasan]

Are you seeing any appraisal by the bank for the mortgage amount coming well below the paid price? I heard this been happening.

[spud]

Have you been to a home depot? Check out building material, the cost increase is part of the reason, building a home is atleast 15% higher. This has alot to do with housing increases

[clarifyingquestions]

Depends what region. It won't drop, dip but no drop. The demand is greater than the supply.

[roblawton]

Just curious on your opinion, I own in london, I don't feel london will have the same correction as some other areas, london was selling homes 5 years ago for half what any other major city was selling for, I feel the uptick in london was not just people moving from bigger cities aka toronto but also housing raising to a metro canadian average, while I agree a correction is coming, london still seems safer from a huge drop than let's say toronto, am I wrong here? Just curious

[nicopc]

Can you tell me when plz ? Cause I'm trying to buy a house and things hasn't changed, there is still a biting war going on and it's discouraging.

[nexusfg]

I don't disagree with anything you've said.

HOWEVER

The in government can still do 2 things to offset the rising interest rates impacting affordability:

1. Raise the maximum mortgage period of 25 years to 30, 40, or 50 years, which would lower monthly payments (although more interest would be paid over the life of the mortgagee)

2. Government expands joint equity ownership plans, such as the government lending more money to first time home buyers, and expanding similar programs
(First-Time Home Buyer Incentive)

[chadpescod-realtor]

The market has definitely shifted. I'm seeing it here in Durham Region.

[georgedavidson]

Rates have to be higher than inflation