Canada’s Real Estate Bubble Is So Big A $91k Price Drop Only Wipes Out 3 Months
Just how big is Canada’s real estate bubble? Canadians, especially in the real estate industry, are already warning rate hikes are damaging the economy. While large price drops sound scary, no one had realized how scary large price gains had become. A typical home can drop the equivalent of a median household’s income, and only roll back to last December — wiping out just 3 months of gains.
If Canadian Home Prices Drop $91k, They’ll Only Wipe Out Q1 Gains
Canadian home prices would need to make a nearly six-digit drop to reverse just the gains made this year. The composite benchmark for a home across the country reached $887,100 in March, up $91,600 from December 2021. Not a mistake. That’s the increase over just the first 3-months of the year — an average of $30k/month, according to CREA.