Canadian Real Estate Is Crashing At One of the Fastest Rates Ever
- Nor Yu
- Sep 4
- 1 min read
The depth of this correction is historic
Canadian home prices have fallen by over 24 percent in real terms since 2022. That makes this one of the deepest housing corrections the country has ever experienced. It has already surpassed the 1990s downturn and is second only to the crash of the early 1980s.
The bottom might not be in yet
Even though prices inched up slightly earlier this year the gain is tiny and could be revised away. Sales volumes remain weak and inflation continues to eat away at affordability. For buyers this might mean patience could pay off. For sellers it is a reminder that recovery will take time.
My Key take aways
First-time buyers may finally have a chance to negotiate instead of chasing bidding wars
Investors need to factor in longer holding periods and cash flow stress tests
Current homeowners should revisit refinancing options and prepare for slower equity growth
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