Equedia Letter

The Truth About the Canadian Housing Market11 min read

Comments (34)
  1. James Conroy says:

    Canadian prices are way over priced. I’ve been trying to sell my home for over 6 months below market value in Vancouver and the interest simply isn’t there. taking it off the market

  2. Salim maje says:

    I am from Vancouver and sales are not slowing down in regards to single family dwellings.This is not because the real estate market is strong and healthy. It is because the prices for listings are going down and some people who are getting houses cheaper from $100,000 to even $400,000 cheaper on newer houses think its a bargain .This reduction in price is fueling the sales and It can only last so long.There many things holding these sales afloat,the Chinese economy and low interest rates.

    1. Theodore Thompson says:

      this is just another reason why the governments have it all wrong. they said housing prices were actually increasing and clearly they are not.

      How naive can people be when prices are dropping but the government can tell us they are going up?

  3. peter burns says:

    Market players are being manipulated ,lied to and flat out conned. This started 15 years ago and in the rush to own the only appreciating asset most understand, a house, became the norm. All a house represents is an investment vehicle….use it for what it is and to meet your lifestyle needs but like any investment don’t depend on it for a golden rainbow.

  4. Tom says:

    a bubble waiting to happen. all of the immigrants cannot support housing prices much longer.

    Makes me want to move to America. Cheaper credit, cheaper housing

  5. sherwin says:

    the builders must be patient……if hilary clinton runs for US president……..citizens will be leaving by the millions

  6. Victor L says:

    Fortunately Vancouver and Toronto are not Canada….they are two markets in Canada. A 1,670 square foot updated split with 2 car garage on a 9,000 square foot lot in Edmonton for $339,000 is hardly a bubble!

    1. Troy says:

      Edmonton is the cheapest real estate on Canada for a metro city. they also contribute very little to the Canadian economy

  7. werner says:

    In Quebec prices are still low compared to other markets, Montreal is saturated with luxury condos. Eastern Townships has still great bargains in the lower and upper price ranges. Border area towns have great bargains because of an aging population the offer is higher than buyers are. Average prices in those areas 140,000 – 175,000$.

  8. Glenn Melcher says:

    Thank you for the boots
    on the ground insight vs
    government cheerleading !

  9. werner. says:

    The only reason housing prices are lower in the USA is because of the 2008 crash. Canadian prices never went out of control like our neighbours did. Once the US catches up to normal levels they will be at or above canadian prices. I agree that prices in B.C. and Alberta are way out of control.

    1. Igor says:

      Werner: perhaps you didn’t see the chart above. Canadian home prices have followed the US almost exactly. US prices rocketed, just as Canadian homes rocketed.

      The 2008 crisis was because of bad lending not only run away housing prices.

  10. Russell hills says:

    What I don’t understand is why nobody has done a comparrison of how a new condo or house is being built or renovated in the last 10 years. The finishes are far more elaborate. Doors, trims, counter tops, # of bathrooms, floor finishes, lighting, etc., etc. Besides which what natural disator has hit Toronto in the last 50 years.If I was from China holding U.S. currency I think I would buy Canadian realastate with those $. I agree 0% to – 10% in the next 2 or 3 years would be good, it may not happen with world currency debasement.

    1. Theodore Thompson says:

      What are you talking about? What does how the new condos are being built have anything to do with the housing prices and crash?

  11. Denis Boucher says:

    In my region in province of Québec, this upside bubble in house price had been pumped up by cities wating to get more income tax cash: to do so, they boosted the evaluation price of every houses. Relevant to this, my own home evaluation got an over 100% upside value.
    Who will sell its house at half the evaluation price? No-one for sure…

  12. Denis Boucher says:

    100% since 2007… That’s huge and immoral !!!

  13. Lionel Hovey says:

    Unfortunately very similar in Australia
    Expensive homes going up.

    1. Lyon says:

      Except in Australia, the government is trying to do something about it instead of telling people to go buy up more and take on more risks.

  14. Russell hills says:

    The costs of finishing the interior of housing units has risen from the quality of those finishes. You can still buy older units for a lot less than the average price. We actually could buid houses for a lot less (more affordable) but wait after devopement costs, HST’s it is not worth it so to sell a unit you put in high end finishes to help balnce the over all cost. One thing that is different from 1989 is that so far there are a lot less speculators. Most of the people that I know have locked into 5 year mortgages recently. so we will see what 2018 brings

  15. Bob Brown says:

    I have two Canadian hospital investments that have been great.

  16. Bob Brown says:

    The income has been great.

  17. fred dimmick says:

    It appears to me that the bigger you build the more it costs and we must have BIGGER right, energy and maintenance costs go up proportionally (but we are conserving aren’t we). The average home is way larger than necessary and than traditionally. House prices in depressed areas of Canada are down for the last last 5 years and no rebound in sight.

    1. Reynold says:

      places are not getting bigger. In the big cities, such as Vancouver, homes are getting smaller.

  18. John McIntyre says:

    As a resident Canadian in Toronto,I do not share your `doom & gloom` picture of the Canadian Housing market.
    We sold our 4-bedroom home in July of last year as there was concern that the market was about to drop.1 year later I see no evidence of a meaningful drop.I now rent a Condo and see Condo buildings going up all over my area.The resale ones are normally more than 1 week on the market.
    New Condos may have a lot of competition to fill their units but I see no panic in doing so as the population increases rapidly.

  19. John McIntyre says:

    Typo error.Resale units are NOT normally more than 1 week on the market.

    1. Reynold says:

      I am from Toronto as well and completely disagree. There’s more construction than ever but condos are NOT selling within a week on the market. You made the right choice selling a year ago.

      When people are spending more than 50% of their income on housing, there’s an issue.

  20. Don says:

    I’m from small town Alberta, and although the housing prices seem to be continually on the rise. It is nothing compared to the rise rate of skilled labour wages. It is possible to make $100,000 to $200,000 with a skilled trade. There simply aren’t enough good workers to be had. There are plenty of unskilled labourers, (explaining the unemployment rate), but good single family homes can be had for 3 to 5 years gross wages. No doubt things will go down with an increase in interest rates, but if your rate is locked in for the life of your mortgage that doesn’t hurt you as long as you don’t sell or your mortgage is assumable. PS It’s OK to sell for less than you buy as long as the place your going to is also being bought for a similar discount. You haven’t really lost anything in terms of accommodations. Another thing would be to start small and buy bigger and better properties after the small one is paid for. Don’t start with the Taj.

    1. Cris H says:

      Its not okay to sell for less because it could mean the difference between paying $3000/month and $2000/month! That’s a really big difference. It could also mean buying a 3000 sq ft home instead of a 2000 sq feet home.

      I don’t know any homeowner that thinks its ok to sell for less than they paid. Just stupid.

      We need to stop encouraging people to buy at these high prices.

  21. Jay says:

    So much for media and economic forcasters about Canadian economy and housing market.
    I am from Toronto and currently what I see a very Stable housing market.The Ministry Of Finance has introduced measures to slow down the housing market by introducing and controlling the mortgages.If the Canadian housing market has to go bust why they would introduced all the control measures.I think Canadian economy and hosusing market is doing fine. I agree on the condo market for oversupply of condos and that’s where the price correction might happen.

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