The text above is a collection of various comments and opinions on the Canadian real estate market. While some believe that the government’s intervention and investment in the market will prevent a significant decline, others predict that the market will eventually crash, possibly by another 20%.
One of the key reasons why homeowners/investors are not selling their properties is their belief that real estate prices will continue to rise. Additionally, the cost of changing homes is high, and the job market is strong, which allows both renters and landlords to continue earning the needed income to cover mortgage payments.
However, others observe that the government’s policies, such as extending amortizations and plowing in more immigrants, are artificially propping up the market. Furthermore, a recession and a drop in property prices could occur if the job market weakens.
The lack of certainty in the real estate market makes some question the point of staying invested in the market, especially with low cash flow returns. As one commentator notes, money doesn’t need to be cheap for there to be a supply and demand issue. If the market eventually crashes, this could also affect prospective immigrants’ willingness to come to Canada or stay in the country.
Despite the differing opinions, one thing is clear: the Canadian real estate market remains a complex and dynamic issue that requires continued observation, analysis, and forecasting.
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Author Eliza Ng