This is about the most concise article I have seen about the dire situation Canada is in. And It doesn’t talk about the likelihood of the wheels falling of the world economic wagon either. The near term in Canada will likely be price drops in housing leading to serious financial problems for too many people. National debt is at an all time high.
Mention of the real estate board projecting for the first time, and prices falling very slightly. This is MASSIVE because it takes the pressure off the buyer and puts it on the seller. How? Because the house will now be worth less next week, not more, meaning the seller has lost his power. Expanding on that, I don’t see that the real estate board is actually predicting an overall decline. Some areas will be down leading by some calculations to an overall slight decline. In my experience, a slight tilt of power from seller to buyer will be greatly magnified in hot areas.
Notice the suggestion that Canada will not get off lucky like we did 2008 and that it will take 15 years to rebuild the economy.
This link is suggesting 3% pullback only, in Toronto due to “demand” that keeps the drop to a minimum. The speculation factor is very difficult to calculate but I know the person who bought my Markham house (GTA) owned more than twenty others. These properties are dumped quickly as the market changes thereby exaggerating the swing and exasperating the hoped for “soft-landing”
This isn’t meant to depress anyone but to encourage them to more carefully than perhaps prior, review their upcoming financial decisions. My principle from King Solomon, Ecclesiastes (the Bible) 11:2: To divide your investments “among 7 or even 8” to avoid losing everything. Make sure you’re household isn’t a part of the national debt statistics.