This take from a Vancouver real estate agent is basic and yet little understood by many. This credit-cycle-induced downturn is now underway folks. Although, it is certainly not ‘unprecedented’. It is common for people to misunderstand or miss the historical patterns and behaviour of financial cycles.
The Alternative lending space is booming and it has CIBC’s Bejamin Tal worried. According to the bank alternative lending now makes up 15% of the market in the GTA. Its likely similar here in Vancouver as I am seeing a lot of it. This space makes the financial system inherently more unstable in my opinion as these are all equity based loans on one terms. If equity drops as we are seeing now, it sets off a chain reaction. Here is a direct video link.
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