High unemployment, Canadian households that are more in debt than any single nation in the G7, and a mortgage deferralcliff that’s upcoming. Gonna hit us like a freight train, are just some of the reasons why Canadian real estate is going to crash. But what about the limited supply, employment numbers improving, and government intervention? Will those balance out these negative factors and prevent the real estate market from crashing in Canada? On this Article of Bald Prairie real estate, I’m going through five reasons why the real estate market’s going to crash and five reasons why it might not.
It was “why hasn’t the actual property market crashed but”.So if you wish to examine that out for some context, go forward. I will put a card upright right here so you’ll be able to have a look. But in this article, I’m going to present to you five reasons why the real estate market is going to crash and five reasons why it might not.I’ll let you guys make the decision, what you think is gonna happen.
Is the real estate market gonna crash and why? Now I don’t do predictions. If you know me, well, I like talking about what has happened. What are some factors going on in the market right now? Kind of give you an overview of where things are at right now. So if you wanna check out my most recent Canadian real estate market update video, I’ll put a link up, So you can take a look at that as well. But I don’t do predictions.
That’s something that CMHC does. They did a video recently, or a market update or forecast, I guess we’ll call it. And they said the real estate market was gonna go down in 2020 by 18%. And then in the back half of 2021prices would start to recover. Well, since that prediction was made in May, prices have gone up and sales have gone up. So that’s one of the reasons I don’t like making predictions. I just like talking about what has happened. So enough of the chit chat let’s get into telling you about five reasons why the real estate market isn’t gonna crash before getting into why the real estate market is gonna crash. First up in my reasons why the real estate market isn’t gonna crash, it’s gonna be government intervention.
Now, the reason I bring that up is that we don’t really knowhow motivated the government is going to be to add liquidity to the market, keep interest rates where they’re at, add special programs, all that type of stuff, throw incentives, especially a government that’s potentially facing an election here in the fall. So that’s why I put him in…I called it a wild card in that last video, you don’t know what the government’s going to do. If you do, let me know. Somebody, give me a quick holler, I’d like to have an inside scoop into what’s going on with the government’s thought process right now, So I could raise my clientele.
Hey, there’s a new program coming out, but that’s a type of stuff that you just can’t make predictions on, but we know that the government is not gonna wanna go into an election with the real estate market being bad or the economy being bad. So they’re gonna do whatever they can to keep those two markets strong. Next up, we’ve got to talk, supply, and demand. This is one of the most important factors in the real estate market.
It’s pretty self-explanatory, but yet it’s a problem we keep seeing come up over and over again in Canadian cities. And that is, it lacks the supply to meet the strong demand. Many Canadian cities, especially the biggest markets, like Vancouver and Toronto, these are the two best examples of this, are constantly constrained by supply problems. And they even have geographic boundaries that make things even worse for them.