Why real estate prices have not crashed yet

Home prices are still high

Despite an aggressive monetary tightening policy by the Bank of Canada, home prices remain elevated in many parts of the country.

Around the lower mainland for example, prices are still up year over year.

There are a few reasons for this stubborn price behaviour.

  1. Those higher interest rates have not been felt in the mortgage market yet. It usually takes 12 to 18 months for monetary policy to take affect. This year and even into early 2024 should be the time when prices really come down.
  2. There’s not enough inventory on the market. Home owners don’t want to sell and listings have dried up.
  3. Increasing demand continues to keep prices elevated. Canada just saw a 1 million population growth, the fastest since recent history. On average the country builds about 200,000 housing units per year. That’s not enough given the amount of immigration we’re seeing.

A couple of weeks ago I made this video that goes deeper into these reasons and give a timeline for potentially the bottom of the housing market.


Random Useless Fact:

Samsung has the brightest smartphone screen at 2,000 nits of brightness.



Author: Liquid Independence

Editor in Chief at Freedom 35 Blog.

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03/28/2023 7:01 pm

Ya I wouldn’t want to sell either with the cost of renting through the roof. Not to mention so many stories of people failing to get financing. Ugh. Best to just hold onto what you got.

03/29/2023 12:01 pm

Mar 27 they lifted the ban on work visa residents on home purchases so it should also give a jolt to the market as well


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David @ Filled With Money
03/31/2023 5:58 pm

One of my friends’ Redfin estimate went from $450k to $330k to $350k and now it’s at $390k

Yeah, homeownership will never be affordable in my lifetime, and that’s OK!


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12/05/2023 8:39 am

Being determined is actually halfway to success, and I think it’s actually important in life. I wasn’t sure about buying a house for a long time, and once I managed to find a great offer, I missed it because I was thinking about it for too long. But later, when I discovered another one, I wasn’t hesitating, and I decided to buyi it.  remodeling homes

12/10/2023 6:36 am

Real estate is a sprawling domain that intertwines with human aspirations, economic fluctuations, and societal evolution. It’s not just about properties; it’s a reflection of our desires, dreams, and financial prudence. The landscape of real estate is as diverse as the people it serves. From sprawling estates to cozy apartments, each property narrates its own story, echoing the lives lived within its walls.

02/25/2024 10:10 am

Despite economic downturns, real estate prices haven’t crashed due to various factors like low interest rates, limited housing supply, and investor confidence. Additionally, government stimulus packages and mortgage forbearance programs have helped sustain market stability amidst uncertainty. Zepto

skilled tradies
skilled tradies
02/25/2024 11:12 pm

Real estate markets can exhibit cyclical patterns, characterized by periods of expansion, contraction, and stabilization. Economic indicators, such as interest rates, employment levels, and GDP growth, influence these cycles, impacting both demand and financing options for real estate transactions.