Each week, more people realize they have too much overhead and need to cut costs. Our family knows several people in all different age groups who bought or borrowed against real estate during the pandemic and are now trying to sell. It’s not going well. It is a very stressful, sad time, and I empathize with those in pain.
As I noted then, most would-be investors and buyers in popular cottage and ski areas borrowed against their primary residence to get downpayments. Now, they have expensive mortgages on all property types.
Meanwhile, new home inventory, single and multi-family, continue to flood the market monthly, especially in areas with the highest demand during the low-rate mania pre-2023.
Those hoping to sell properties for 2020-2022 prices need to face math. Most are hoping for a buyer-ability that is no more. The average Canadian home sale in October was $656k, nearly 20% lower than the $816k average in February 2022 (CREA data).
In the segment below, Reventure’s Nick Gerli reviews similar trends sweeping many US markets, where the median new home sold in October at $409, -18% year-over-year. It’s called a real estate cycle for a reason.
Home Builders are cutting the price of new houses across the US Housing Market, with prices dropping 18% YoY. The biggest one-year decline in new home prices in US History, even bigger than the decline in the 2008 crash. Here is a direct video link.
