Monthly Archives: February 2026

A Bank of Canada study estimated that for every dollar increase in home values, spending rose by 5.7 cents. A New Zealand study found that the housing wealth effect had an even greater impact in reducing spending when home prices … Continue reading →

The benchmark Canadian home resale price has fallen more than 21% in nominal terms (25-30% in real terms) from the 2022 cycle peak (shown below since 2020). But new home prices have fallen just 8% from the peak nationwide because … Continue reading →

Residential real estate is the most widely owned and highly leveraged asset class for households. For these reasons, housing cycles have outsized effects on consumer confidence, spending, the economy and financial markets. The deflating housing bubble will remain a major … Continue reading →