{"id":761,"date":"2020-07-27T02:03:00","date_gmt":"2020-07-27T02:03:00","guid":{"rendered":"https:\/\/www.realestateleads.ca\/blog\/?p=761"},"modified":"2023-09-26T16:52:56","modified_gmt":"2023-09-26T16:52:56","slug":"the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada","status":"publish","type":"post","link":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/","title":{"rendered":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada"},"content":{"rendered":"
<\/div>\r\n
\r\n
\"\"<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n

Having a health perspective on anything tends to usually involve looking and listening to both sides of an argument, and finding the happy medium based on the usually-accurate insistence that the truth is usually in the middle. There have been all sorts of people insisting that the real estate market in Canada is about to see epic crashes, while on the other side of the coin there\u2019s been many economists and the like who\u2019ve had a not-so-fast response to those kinds of assertions.<\/p>\r\n\r\n\r\n\r\n

Now one of the things that really needs to be said is that many of the doom n\u2019 gloom forecasters is that you shouldn\u2019t expect a whole lot of objectivity on that side of the fence. We won\u2019t go into a lot of detail, but the expression \u2018wishful thinking\u2019 is really applicable here. Would-be homebuyers who are hoping for mammoth price drops so they can afford to buy a home without doing anything to increase their ability to afford a home are bound to be disappointed. That is what it is.<\/p>\r\n\r\n\r\n\r\n

Alternately, there\u2019s so much in the way of concrete evidence (and not an ounce of wishful anything, as it is in the real<\/em> working world) to suggest that house prices are going to dip temporarily, but that\u2019s it. That also means that real estate likely isn\u2019t going to become a less competitive business either. With that understood, our online real estate lead generation system here at Real Estate Leads does wonders for allowing realtors of all sorts to get so much more out of their client prospecting efforts.<\/p>\r\n\r\n\r\n\r\n

But back to topic, as always \u2013 let\u2019s add some meat to the sandwich here about why house prices aren\u2019t going to plummet in Canada as this COVID-19 pandemic continues to move along.<\/p>\r\n\r\n\r\n\r\n

Not So Fast Now<\/strong><\/h3>\r\n\r\n\r\n\r\n

CHMC is an acronym for the Canadian Housing and Mortgage Corporation, and it was early last month that these folks suggested home prices in Canada would be falling over the next year. Everyone\u2019s entitled to their opinion, but it\u2019s better to have something backing yours up if you\u2019re going to have one. Similarly they\u2019re free to restrict lending standard on insured loans and lower debt service ratio caps and make higher credit scores a must, but the fact of the matter is the reported demise of a healthy housing market in Canada is premature.<\/p>\r\n\r\n\r\n\r\n

Numbers, Numbers<\/strong><\/h3>\r\n\r\n\r\n\r\n

The reality is that despite one of the worst economic slowdowns in the history of our nation, housing prices across Canada are doing quite fine for the most part. Yes, the number of transactions decreased considerably from April to late May, but after that the decline has been fairly small no matter which angle you want to look at it from. Yes, there were 56% fewer houses sold across the country in April of this year compared to April of last year.<\/p>\r\n\r\n\r\n\r\n

But the fact that many who want to fit a narrative might not want to acknowledge is that the average house in Canada costs 5.6% more at this time than it did exactly a year ago, even if that\u2019s not supposed the way it\u2019s supposed to be with people locked down and losing employment, etc.<\/p>\r\n\r\n\r\n\r\n

Now we\u2019re not suggesting these realities didn\u2019t factor in, and they still do but after seeing that virtually no homes were put onto the market in April, it was interesting to note that the few who did remained very firm on the prices they wanted for their homes. That\u2019s not surprising, because no matter the climate if you\u2019re in a supply & demand sphere where demand outstrips supply \u2013 which is probably always going to be the case in most of Canada \u2013 there\u2019s always going to be a buyer who\u2019ll pay that price.<\/p>\r\n\r\n\r\n\r\n

They might not come along right away, but they will.<\/p>\r\n\r\n\r\n\r\n

The Here and Now<\/strong><\/h3>\r\n\r\n\r\n\r\n

So then we fast forward to today and we\u2019re obviously see a very different picture and one that counters what the CHMC had envisioned. The Canadian real estate market is recovering better than expected based on surprising economic resiliency, desires to move that have been augmented by being cooped up in the same home for months, and dirt-cheap interest rates.<\/p>\r\n\r\n\r\n\r\n

In addition, many Canadian realtors are reporting sales rebounding much faster than anticipated and the sum of it all is a real estate market in Canada that\u2019s not mortally wounded at all and is trending towards getting back to what it needs to be.<\/p>\r\n\r\n\r\n\r\n

And when we say \u2018needs to be\u2019 it\u2019s important to remember that for many provinces and cities the activity in their real estate market is a source of their favourable GDP.<\/p>\r\n\r\n\r\n\r\n

Some Reasonings<\/strong><\/h3>\r\n\r\n\r\n\r\n

The CMHC definitely has some interest in forecasting the way they have, and without going into unnecessary detail it\u2019s related to how they are in competition with privately held mortgage default providers. These competitors are going to be underwriting changes to their processes just as soon as CMHC announces some new rule or change.<\/p>\r\n\r\n\r\n\r\n

Yet here we are and for the first time in history these competitors are keeping their lending standards the same and not following the CMHC.<\/p>\r\n\r\n\r\n\r\n

Why would they make such a radical departure from the long-standing \u2018way it is\u2019? Well, to put it plainly they disagree with CMHC\u2019s assessment on the market. Read into that what you will.<\/p>\r\n\r\n\r\n\r\n

Some Truth on Canadian Real Estate Prices<\/strong><\/p>\r\n\r\n\r\n\r\n

If there\u2019s one primary understanding to take away from all of this regarding real estate in Canada it\u2019s that the economy has been far more resilient than most predicted. That\u2019s good for real estate prices, because with a sufficiently healthy economy comes a sufficient number of qualified buyers who will buy homes for what they\u2019re worth in ANY environment because they know demand outdoes supply many times over in Canada and they continue to have the financial means of putting a roof over their head.<\/p>\r\n\r\n\r\n\r\n

Sign up with Real Estate Leads here<\/a> and receive a monthly quota of qualified, online-generated buyer and \/ or seller leads that are sent to you exclusively and for the region of any city or town in Canada you\u2019re working in. It\u2019s a proven-effective way to be put directly in touch with individuals or couples who have indicated their likelihood of making a move in the real estate market in the near future.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

Having a health perspective on anything tends to usually involve looking and listening to both sides of an argument, and finding the happy medium based on the usually-accurate insistence that the truth is usually in the middle. There have been all sorts of people insisting that the real estate market in Canada is about to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-761","post","type-post","status-publish","format-standard","hentry","category-general-topics"],"yoast_head":"\nThe Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog<\/title>\n<meta name=\"description\" content=\"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog\" \/>\n<meta property=\"og:description\" content=\"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/\" \/>\n<meta property=\"og:site_name\" content=\"Real Estate Leads Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-27T02:03:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-26T16:52:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg\" \/>\n<meta name=\"author\" content=\"Real Estate Leads\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Real Estate Leads\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/\",\"url\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/\",\"name\":\"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg\",\"datePublished\":\"2020-07-27T02:03:00+00:00\",\"dateModified\":\"2023-09-26T16:52:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86\"},\"description\":\"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog\",\"breadcrumb\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#primaryimage\",\"url\":\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg\",\"contentUrl\":\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.realestateleads.ca\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#website\",\"url\":\"https:\/\/www.realestateleads.ca\/blog\/\",\"name\":\"Real Estate Leads Blog\",\"description\":\"Welcome to RealtorLeads Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.realestateleads.ca\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86\",\"name\":\"Real Estate Leads\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g\",\"caption\":\"Real Estate Leads\"},\"url\":\"https:\/\/www.realestateleads.ca\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog","description":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/","og_locale":"en_US","og_type":"article","og_title":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog","og_description":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog","og_url":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/","og_site_name":"Real Estate Leads Blog","article_published_time":"2020-07-27T02:03:00+00:00","article_modified_time":"2023-09-26T16:52:56+00:00","og_image":[{"url":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg"}],"author":"Real Estate Leads","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Real Estate Leads","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/","url":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/","name":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog","isPartOf":{"@id":"https:\/\/www.realestateleads.ca\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#primaryimage"},"image":{"@id":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#primaryimage"},"thumbnailUrl":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg","datePublished":"2020-07-27T02:03:00+00:00","dateModified":"2023-09-26T16:52:56+00:00","author":{"@id":"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86"},"description":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada - Real Estate Leads Blog","breadcrumb":{"@id":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#primaryimage","url":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg","contentUrl":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2020\/04\/AdobeStock_200061803-300x169.jpeg"},{"@type":"BreadcrumbList","@id":"https:\/\/www.realestateleads.ca\/blog\/the-likely-myth-of-soon-to-be-falling-real-estate-prices-in-canada\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.realestateleads.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"The Likely Myth of \u2018Soon to Be\u2019 Falling Real Estate Prices in Canada"}]},{"@type":"WebSite","@id":"https:\/\/www.realestateleads.ca\/blog\/#website","url":"https:\/\/www.realestateleads.ca\/blog\/","name":"Real Estate Leads Blog","description":"Welcome to RealtorLeads Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.realestateleads.ca\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86","name":"Real Estate Leads","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g","caption":"Real Estate Leads"},"url":"https:\/\/www.realestateleads.ca\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/posts\/761"}],"collection":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/comments?post=761"}],"version-history":[{"count":0,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/posts\/761\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/media?parent=761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/categories?post=761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/tags?post=761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}