Canadian Real Estate Market Is Cracking...Here's Why It Matters

[glengarbera]

Canada has been in a real estate bubble since 911. We kept our interest rates way too low for way too long, and now it's time to pay.

[raynoldgrey]

Because so many people overpaid for homes during a period when interest rates were low, I believe there will be a housing crisis because these people are in debt. If housing prices continue to fall and, for whatever reason, they can no longer afford the house and it goes into foreclosure, they will have no equity because they will not make any money if they sell. I feel that many people will be affected by this, especially given the predicted mass layoffs and fast rising living costs.

[starbright]

Australia is a dead end hole with insanely priced shit boxes

[Zuzanafan]

We bought a condo, several years ago in Calgary. The banks are in on the pre-build scam too. They allow the appraisal that is way over, to go through. The corruption is astounding and has been going on for decades.

[AlexaMGilbert]

This is an excellent review of what has occurred in Canada! Thank you so very much. I have heard NO Canadian explain this as clearly as you have.

[jbqu]

Same shit was told during confinement, then with higher interest rates. Nothing did. Real estate keeps going up just at a slower pace. No bubble exploding soon. Buying now is always the best time. The more you postpone the less you’re likely to become an owner.
The market is solid almost everywhere in Canada. If it requires some sacrifices then sacrifice or remain a tenant.

[nancycampbell]

I am super excited to read your paper - I will read it tonight if I can get my hands on it.

[dmka]

I live in Edmonton. I'm not sure if it is a bubble. All the immigration we have, all the high paying industry and oil jobs. I dont think its a bubble I think the demand is way bigger than the supply. A significant % of the immigrants from India and the 3rd world come here to Edmonton. Sure most people cant afford to buy a house, but the immigrants I guess are willing to take a massive risk and work like slaves. They will be able to afford a house but the next generation no, they weren't born in the 3rd world so they wont have the drive their parents do

[JS-jhcy]

Some smart-ass traders or some damn AI trading will really fuck the financial market up in the next few years as it manipulates around the interest rates differentials of different countries and usa as traders go high and low

[blumaxx]

All Canadians can thank Mussolini Trudeau for all the expenses that they cannot afford a little bit like potato Joe here in America prices are going through the roof and people can't afford to even eat this will end badly

[AG-hlni]

If you have cash on the side be patient your opportunity is about to come

[SometimesIamNot]

Chinese international students don’t come over, it is Indian . Check your facts please, Canada isn’t an attractive place anymore for most of Chinese young people.

[prophyt]

In the Warehouse I work in everyone talks about how they can't get ahead and regret coming here.

[gentronseven]

Clearly Canada needs to just come out and say AI a few times in a press conference

[gmarks]

Impossible! My high school dropout Realtor said real estate only goes up forever! Pay anything now! Now is the best time to buy!😂😂😂

[MrPatrick]

I'm in Canada and the Real Estate market is starting to implode. To make things worse Canadian banks are holding over a $billion in mortgage delinquencies

[stamanjw]

I help build these Canadian products for Credit Unions. The payments can become 100% interest until it surpasses the payment amount and has to be rescheduled. It’s called hitting the trigger rate. I can’t believe it’s legal!

[Wallewallewalle]

It’s truly a mess, Thanks George!

I just left Yorkdale — this mall probably has the most high end stores all in one place and the parkades are packed.. It amazes me how much of a mess the economy is yet the shopping centers are FULL!

[nickzivs]

We never went through the deleveraging cycle and housing is our chosen bubble market vs the US where it's stocks. It got so insane with the bidding wars that I knew a handful of people dropping out of their career paths back around 2015 to become real estate agents. The only major reasons the housing markets haven't substantially cracked is because the federal government's immigration policy, their housing "savings fund" policies, but even bigger is increasing amortization from 25 to 30 years and banks working with borrowers to extend amortization in some cases as far out as 60 years. Steve Saretsky and The Loonie Hour have been on this for a long time. As far as how long this bubble has been building, basically 24 years. The 90s were a flat/bear market and houses started to accelerate to the upside right around the turn of the millennia.

[dutchgirl]

Im in Canada. Great respect for Ben. I think many will be surprised at how long the "extend and pretend" will continue. In the meantime keeping my powder dry. Hard to resist the FOMO from real estate agents. Even Trudeau goes on the air admitting housing prices can not fall 😅