I lived this in Toronto. Bought in '88. Everyone said we were lucky because we got a house under $200k. Held house for 10 years. Sold for 38% loss. New house kept delaying so we took our loss and went back to rental. Bought in 2006 in Toronto. When 2020 came we saw the template clear as day. We sold in 2021 and retired to small town with fully paid for house and retirement $ invested. We lost approx $50k and were able to recover. People losing $500k? Good luck.

Great history lesson, thank you

It was inevitable there would be in the 21st-century a correction to the Toronto-area housing market, with it TBD how soon that correction will be over.

Bought my home in 1989 bank interest rates were at 18% and my wife to be and I were making minimum wage . You could live like a king back then on next to nothing. Who would have thought that crazy insane low interest rates would lead us to this housing mess.

Rates are going up next year 2 or 3 times so the downward pressure will continue

The problem with Canadians is they insist on buying high and trying to sell higher.  It's FOMO fed by the online real estate "gurus".  You people need to stop listening when these social media grifters tell you when to buy and when to sell.

Save Timmy’s!

Canada is such a dumb country… the misallocation of capital is just insane.

Thanks for this analysis. I think the 88-89 peak was due to the baby boomers and also supported by the new immigrants. The oldest boomers were in the early 40’s and they accumulated enough equity to move up in a newer and bigger homes and or to buy a second house for investment. The youngest group of boomers finished University and or have worked a few years so they are eager to purchase pre construction as well. The population in this boomer generation continues to bring real estate to rise. With interest rates started to lower after 9/11, the real estate market continues to boom and this give an impression to people that real estate won’t go down at all.

This is the traditional course for a real estate crash. The myth of sudden repricing in the American Market is just that A myth. Significant numbers of US buyers who purchased in 2010 and 2011 did not see positive equity until the covid boom in 2020.

In reality, nothing is crashed, its just returning to a normal condition. property prices right now is still too high, prices have been pushed sky high by those chinese speculative investors to an unacceptable figure. I would say prices should continue to go down back to approx $600 per sq ft at most such that people can afford to buy one. Houses are life essential and not for people to buy and sell to make money.

Imagine history just keeps repeating itself and people still keep falling for it😂. The older i get is the more i realize that we are just sims for some other advanced species. They are just watching and laughing

This time around everything is completely different. The entire Canadian housing market is all propped up by foreign Asian money but the Asian housing market overseas has crashed meaning they have much less money to buy real estate abroad now The inflation rate is understated each and every year meaning everyone in Canada gets poorer and poorer with each passing year. Presently only ten percent of married workers can get approved for a mortgage but very few can come up with a 20 percent down payment. If interest rates don't fall real estate prices still have a long way to fall.

The second housing bubble started in 2015 when all the rich Asians poured all their money into Candian real estate. Where did you dream up the year 2018?