The global crisis couldn’t leave the real estate market untouched. Prices are dropping at an unexpected pace—20% down compared to the February peak, and it seems like we’re not at the bottom yet.
So, what now? Should we start panicking? Let’s take a calm and rational look at the situation.
Unfortunately, the real estate market doesn’t depend on just one factor—immigration levels, household incomes, inflation, or global trends. Immigration to Canada continues, unemployment remains low, and even the stock market is showing signs of recovery, yet home prices are still falling. What’s more, even analyzing all these factors together doesn’t bring much clarity—experts remain divided on where things are headed.
On one hand, the drop in prices is a reaction to several years of unchecked growth (a market can’t rise indefinitely), increasing mortgage rates (which are making payments unaffordable for many), and overall household debt levels. Additionally, the government seems to be tightening regulations on investors: tenant protections are strengthening, making it clear that policymakers are deliberately trying to push investors out—or at least reduce their influence.
On the other hand, Canada remains a safe haven for immigrants and investors—those who value stability in times of global uncertainty. This means that, in the long run, demand isn’t going anywhere.
So, what should you watch? We recommend tracking the key indicators of Canada’s real estate market: changes in mortgage conditions (interest rates, amortization periods), new regulations for investors, including foreign buyers, as well as price trends and sales volumes. Any shifts in these factors could signal a market turnaround, and their combined impact may help determine whether we’ve hit the bottom or if there’s still room to fall.
We’d love to hear your thoughts, insights, and questions!
