ONTARIO REAL ESTATE MARKET SEES THE LARGEST PRICE DECREASE

Sellers need to clue in. I really don’t care what happens here I have no intention of buying or selling anything but this is absolutely stunning what goes on.
We just went through a 40 year interest rate downward cycle. This is going to play out for years and years. Remember all those years of unbelievable rises in house prices. How about the reverse happening. Once every last speculator is shown the door then things can recover. We are no where near there yet.
The Nasdaq went down almost 90% in the early 2000s. It didn’t happen over a few months. It happened over years. That’s what we have to look forward to.

Seasonal peaks and troughs are normal and will always occur whether the market is good or bad. What you should've mentioned or noticed is the seasonal highs are getting lower since 2021. That trend tells you where we're headed. Prices will always revert to the mean but it doesnt happen in a straight line. Jon Flynn has some really great content on this subject including historical analysis during recessionary environments.

This is not a low spot!

Many people cannot sustain this kind of pricing

Decrease of 8% after 15% up in 2022 is not dip it's false bottom , it's not appealing to buyer even at this Present price point .

Factor in the ~15% inflation damages to consumers purchasing power between Q2/2022 to Q2/2024(StatsCan).... and those Losses are significantly greater than the very strict 'numerical' losses suggest.
And very simply because 2022 loonies bought ~15% MORE than those same loonies they are selling for today in 2024.... and even WORSE if they bought earlier !
Warren Buffet doesn't catch falling knives.... full stop !

Here in the Vancouver area, it's typical to see decreases of 100-300k or more on most house sales these days. That's about 5-8%.

"Be fearful when others are greedy." This is why Warren Buffet has a record 280 billion dollars of cash that is sitting on the sidelines right now. Were you aware of this?, as you quoted him in the video. He knows that assets are overvalued and wants to be ready for better value. I think one could make a case for Canadian RE being overvalued at the moment. I wonder what Buffet would think about the valuations here.

If there are so many opportunities out there like Diane suggests, why does Buffet have a record cash position then? It's not just Buffet either, other intelligent investors are doing the same as retail buys in. What does she know that Buffet is missing? What asset classes do you like atm Diane, it doesn't have to be limited to Canadian RE, lets broaden the focus.

Bought property during 2019,20,21 .... That was when buyers get screwed unless you sell and after buy during that time it still a profit if you sell now in corrected prices. Sad reality

If inventory is all time high. Then to expect normal season will force inventory down is wishful thinking. Only way to do is crash CAD to 50 cents

Is December/January the best time to buy? Or would spring be the best time to buy?

"Housing starts have diminished". That is why population growth is projected to be flat for the next 3 years, but it wouldn't surprise me if it goes on for longer. You can't keep bringing in people if there isn't enough work, all it would do is raise unemployment through the roof which leads to lower productivity and hence a weaker currency/diminished buying power.

It's simple, if no one is building, expect population growth to fall off a cliff too. Have you read about the new targets for population growth yet?

Economic conditions typically determine population growth. So if no one is investing in new houses, what does this say?

If houses are not being built, it means municipalities are not getting the development fees as revenue. This means that they will be raising property taxes and other taxes to make up for it, this weakens consumer buying power.

The conservative leader came out the other day and was talking about lowering the development fees so that it makes it easier to build more houses. High development fees are bearish for real estate, not bullish. All it does is chase away investment which leads to slower growth and a weaker economy.

Ask any 5 year old and they'll tell you that the game of musical chairs is very cyclical.......*until the music stops*.

Great info Diane 🙌

The over leveraged are keeping the house prices too high. We will wait until that clears up.

Thanks for sharing this valuable info!

I noticed that houses in my area has been on the market for months now. Before they sold right away.

This guy is so biased wantes to find an argument where there is none, to try and prove his point. 😂 prices will drop l it just takes time a huge part of demande during covid came from super low interest rates. We are never going back to low interest rates ( no more free money ) 😢.

Before the 2008 collapse in the US The Banks had Unrealized losses Totaling $52 Billion.
Unrealized losses in the US Banks in 2023 - 2024 have hit $620 Billion. Commercial Real-estate Debt in the US sits at $1.2 Trillion. Credit Card Debt in the US is 3 to4 Trillion and Growing as the USD is falling. A collapse is of some kind is Totally Expected and most people feel it or Know its coming.. Available condos in the TO went from 2500 to 8000 and growing as each month passes. The Canadian Real-estate market has been Overinflated by a minimum of 50% thanks to Trudeaus policies . The correction is here and people aren't stupid, They know to wait for the bottom before purchasing a home. Imo we'll see significant losses in Foreign investments over the next 18 months and prices will continue to drop as a correction takes place. :)

Diane, what is the reason the prices for home in Berrie is not going up?

condos are not built for dwellers ,they are built for investors.Start building 2/3 bedroom units and families may consider it if its a viable option.Most condos are more expensive than town houses that do have 3 beds and a postagestamp of a yard

Toward the end of the vid she says a plot of land is 3 to 400k.
As the bubble continues popping the raw land prices will drop the most, 80 to 90%
Then all the builders that don't go bankrupt will buy that land and get back to business.
The real estate market is like a game of Monopoly, when everything is bought u and way over valued the game ends, has a reset and starts over.
We are now at the beginning of the reset