Most housing markets in Canada and the US are moribund, with few active buyers, unsold listings, and prices stalling/drifting down. A typical fallout when financial bubbles burst is for prices to mean-revert to pre-bubble levels.
In the stock market, that suggests prices could retreat below 2019 levels.
In real estate, that could mean pre-2015 levels. In Ontario, where nearly 40% of Canadians live, motivated sellers are now starting to ask for sub-2017 prices. Many other owners are still in denial.
The upside is that lower shelter costs are essential to restoring affordability and correcting extreme financial disparity between older and younger generations. The segment below examines key forces buffeting property markets. It’s important to understand context.
All data now points to a recession in housing, notes real estate analyst Nick Gerli. He sees prices grinding downwards next year, as sellers start capitulating. The silver lining? Housing is starting to become more affordable again in certain markets. For a firehouse of data showing the true state of the housing market right now, watch this video. Here is a direct video link.
