The Canadian Housing Crisis Explained

Summary

The video script discusses the Canadian housing market's challenges, including high prices and debt levels. It highlights the disparity between income growth and housing costs, especially in cities like Toronto and Vancouver. The script explores factors contributing to the market's issues, such as low housing supply, immigration, and the impact of low-interest rates on investment. It also addresses government efforts to improve affordability and the potential risks of a housing bubble, urging viewers to consider personal financial stability over investment gains when buying property.

Takeaways

• 🏡 Canada is facing a severe housing affordability crisis, with exorbitant property prices, especially in cities like Vancouver and Toronto.
• 💸 Canadian households have become some of the most indebted in the world due to the gap between rising property prices and stagnant incomes.
• 📉 Home prices in Canada have fallen 12% from their peak, but they are still significantly higher compared to a decade ago.
• 📊 Canadian mortgage practices are generally more conservative, which helped the country weather the 2008 financial crisis better than the US.
• 💰 Investor demand, both domestic and foreign, has significantly influenced the Canadian real estate market, contributing to higher prices.
• 🏘️ Canada's housing supply is the lowest per capita among G7 nations, with significant bureaucratic and labor challenges hampering new construction.
• 📈 Interest rate hikes by the Bank of Canada have increased mortgage payments, exacerbating affordability issues for homeowners.
• 🔍 A considerable number of Canadian mortgages are variable-rate or fixed-payment, leading to financial strain as interest rates rise.
• 📉 Despite these challenges, mortgage delinquency rates in Canada remain low, partly due to substantial cash savings accumulated during the pandemic.
• 💼 The Canadian government has introduced several measures to address housing affordability, but significant supply-side issues persist, necessitating meaningful policy changes.

Q & A

What are some key issues facing the Canadian housing market according to the video?

The key issues include skyrocketing home prices, high levels of household debt, and a lack of housing supply relative to demand.

How has the increase in interest rates affected Canadian homeowners?

The increase in interest rates has led to higher mortgage payments, causing financial strain for many homeowners, particularly those with variable-rate mortgages.

What is a 'trigger rate' and how does it impact Canadian mortgages?

A trigger rate is the interest rate level where the entire mortgage payment is used to cover the interest, meaning the principal is no longer being paid down. This can lead to negative amortization, where the mortgage balance actually increases.

Why haven't delinquency rates in Canada increased despite the financial strain on homeowners?

Possible explanations include the sizable cash savings built up by Canadians during the pandemic and the fact that fixed-rate and some variable-rate mortgage payments do not change immediately with rate hikes, delaying potential delinquencies.

How does Canada's housing supply per capita compare to other G7 nations?

Canada has the lowest housing supply per capita among G7 nations, with 424 units per 1000 people.

What are some of the government measures taken to address housing affordability in Canada?

Measures include a tax-sheltered savings account for first-time home buyers, a ban on foreign buyers, and vacancy taxes at various levels of government.

How did the 2008 financial crisis affect the Canadian housing market compared to the US?

During the 2008 financial crisis, the US housing market was severely affected with a 20% drop in home prices, while Canadian home prices fell only 9.2% and recovered within two years.

What is the impact of population growth and immigration on Canada's housing market?

Population growth and immigration, particularly to major cities, have increased demand for housing, contributing to higher prices and a tighter housing market.

Why is there a shortage of skilled labor in the Canadian construction industry?

The construction industry in Canada is experiencing a record high of 80,000 vacancies, partly due to a lack of skilled labor, which is one reason immigration is viewed as part of the solution.

What advice is given to potential home buyers in Canada according to the video?

Potential home buyers are advised to focus on affordability and risk tolerance rather than trying to time the market, considering housing costs should not exceed 32% of their average before-tax monthly income.

Outlines

00:00

🏠 Canada's Housing Market Crisis

Canada is known for its politeness, but recently it's also become known for its unaffordable housing. Homes in places like Vancouver can cost millions, and despite rising property prices, incomes haven't kept pace, leading to high levels of household debt. The video aims to explore the extent of the housing market crisis in Canada, the factors influencing it, and the unique challenges the country faces.

05:00

🏙️ Urban Population Concentration and Housing Supply

Canada's population is concentrated in urban centers, with cities like Toronto and Vancouver experiencing high population growth due to immigration. Despite having ample land, Canada has the lowest housing supply per capita among G7 nations, and building new homes is hindered by labor shortages, bureaucracy, and zoning restrictions. Efforts to address housing affordability, such as new savings accounts and taxes, have seen limited success so far.

10:02

💸 Investor Influence and Household Debt

The combination of high demand, speculation, and low supply has led to significant investor activity in Canadian real estate, with many homes owned by investors. This has contributed to rising property prices and household debt, with Canadians having some of the highest debt levels in the world. The recent increase in interest rates has cooled the market but also increased mortgage payments, leading to financial strain for many homeowners.

15:04

📉 Mortgage Rates and Payment Strain

Variable-rate mortgages have become common in Canada, and the recent interest rate hikes have significantly increased mortgage payments. Many Canadians are struggling to keep up with these payments, and some are even experiencing negative amortization, where their mortgage balance increases over time. Despite these challenges, mortgage delinquencies remain low, possibly due to built-up savings and temporary measures by lenders.

20:05

🔍 Navigating the Housing Market

The video advises potential homebuyers to consider affordability and risk tolerance over financial gain. It suggests exploring less populated areas or other investment options and highlights the importance of professional financial advice for those struggling with mortgage payments. The housing crisis in Canada is complex, with no easy solutions, but individuals can take steps to better prepare for market fluctuations.

Keywords

💡Housing Affordability

Housing affordability refers to the relationship between household income and housing prices, indicating how easily individuals or families can afford to buy homes. The video highlights the severe affordability issues in Canada, particularly in cities like Vancouver and Toronto, where home prices have skyrocketed while incomes have not kept pace.

💡Debt

Debt in the context of the video refers to the borrowing by Canadian households to afford homes amidst rising property prices. The video notes that Canadian households are some of the most indebted in the world, with a high ratio of debt to disposable income, exacerbated by rising interest rates.

💡Interest Rates

Interest rates are the cost of borrowing money, set by central banks like the Bank of Canada. The video discusses how recent hikes in interest rates have significantly increased mortgage payments, contributing to the financial strain on Canadian homeowners and potentially cooling the housing market.

💡Mortgage

A mortgage is a loan used to purchase real estate, with the property itself serving as collateral. The video details various types of mortgages in Canada, including fixed-rate and variable-rate mortgages, and discusses how rising interest rates have impacted mortgage affordability and increased financial risks for homeowners.

💡Supply and Demand

Supply and demand in real estate refer to the availability of homes for sale (supply) and the desire of buyers to purchase them (demand). The video explains that Canada has a low housing supply per capita, which, combined with high demand, particularly in urban areas, has driven up property prices.

💡Variable-Rate Mortgages

Variable-rate mortgages have interest rates that can change over time, often based on market conditions. The video highlights that many Canadian homeowners chose variable-rate mortgages during periods of low interest rates, leading to financial strain as rates have increased significantly.

💡Immigration

Immigration refers to the movement of people into Canada, contributing to population growth. The video mentions that high immigration rates have increased demand for housing in major cities, further driving up prices and impacting housing affordability.

💡Negative Amortization

Negative amortization occurs when mortgage payments are not sufficient to cover the interest, causing the loan balance to increase. The video describes how some Canadian homeowners with variable-rate fixed payment mortgages are facing this situation due to rising interest rates, leading to increasing mortgage debt.

💡Real Estate Investment

Real estate investment involves purchasing property to generate income or profit. The video discusses how low interest rates and rising property values attracted investors to the Canadian housing market, contributing to higher prices and reduced affordability for typical homebuyers.

💡Financial Strain

Financial strain refers to the stress and difficulty in managing finances due to high costs or debt. The video highlights the significant financial strain on Canadian households caused by high housing costs, rising interest rates, and increasing debt levels, making it challenging for many to afford their mortgage payments.

Highlights

Canada is known for politeness and recent economic issues like debt and unaffordable housing.

Vancouver's housing market exemplifies high prices with a 1949 bungalow priced at 5.5 million CAD.

Canadian households are among the most indebted globally due to income not matching rising property prices.

Interest rates are rising and home prices have dropped, leading to concerns of a housing bubble.

Canadian real estate has been resilient with a quick recovery post-2008 compared to the US.

Canada's conservative mortgage lending and robust banking industry contributed to housing resilience.

Canadian property prices have doubled in the last decade, outpacing wage growth.

High property prices in Toronto and Vancouver are significantly above the average family income.

Canada's large land area contrasts with its population concentration in urban centers.

Immigration has fueled population growth, primarily in large cities, affecting housing demand.

Canada has the lowest housing supply per capita in the G7, contributing to unaffordability.

Supply-side issues include labor shortages, bureaucracy, and zoning restrictions.

Government measures to improve housing affordability have seen limited success.

Low interest rates post-2008 led to an influx of investment into real estate.

Investor demand in Canadian real estate is primarily domestic, not foreign.

Canadian households have high levels of debt, with mortgages being the majority.

Recent interest rate hikes have increased the burden on mortgage holders.

A significant portion of Canadian mortgages are variable rate, impacting many with rate increases.

Mortgage delinquency rates in Canada remain low despite financial strains.

Canadians have built up savings as a buffer against higher mortgage payments.

The current trends in the housing market are unsustainable without policy changes.

Personal strategies for dealing with the housing market include focusing on affordability and risk tolerance.

Transcripts

around the world Canada is known for a

number of different things Putin saying

the word a general politeness

pronouncing the word boot totally

normally but more recently some less

endearing things have been added to that

list debt and unaffordable housing you

see in places like Vancouver British

Columbia it's not uncommon to see homes

like this three-bedroom 1949 Bungalow

going for 5.5 million dollars

albeit that's in Canadian it's only 4.1

million in American dollars but as

property prices have risen in the

country incomes have not kept pace

leaving Canadian households to become

some of the most indebted in the world

as home buyers have made up the

difference between their incomes and

house prices using debt now interest

rates are on the rise home prices are

down 12 from their Peak and people are

starting to wonder if Canada's housing

market is in a soon to pop bubble so as

your resident Canadian Finance YouTuber

I wanted to make this video to help

answer the question

how bad is it really and to be clear

it's impossible to predict where things

will go from here and to try and time a

crash and I'll try to explain the

important variables that will influence

the outcome one way or another without

making a grand statement about how now

is the time to short Canadian housing

but many Canadian households are

currently experiencing significant

financial strain and while there are

some unique advantages Canada has when

compared to the US and the real estate

space there are also some pretty

depressing unique features to Canadian

real estate that makes the area harder

to manage than an asbestos-laden popcorn

ceiling so let's talk about real estate

in Canada

buckle up it's going to be a ride on

today's plain bagel

during the 2008 financial crisis the US

housing market was pummeled Rising

interest rates combined with

unsustainable lending practices caused

mortgage delinquencies to Surge and home

prices to lose a fifth of their value

contributing to one of the worst

economic ruts in U.S history

just north of the Border however things

were a lot less dramatic despite

Canada's heavy economic ties to the US

home prices in the country fell just 9.2

percent from their peak in 2008 to their

trough in 2009 and while it took nearly

a decade for U.S properties to return to

their previous High Canadian properties

recovered all of their lost ground

within two years many attributed this

resilience to Canada's sound mortgage

lending practices and robust banking

industry whereas America is fragmented

and Loosely regulated Finance sector had

allowed the proliferation of risky loans

speculation and leverage upon leverage

in the real estate space Canada's

mortgage lending activity was much more

conservative with the market being

dominated by large well capitalized and

diversified players were carefully

watched in their Investment Banking and

mortgage lending activities by

Regulators the tenacity of Canadian

housing has however proven to be a

double-edged sword because while America

cause real estate slump did have the

silver lining of making properties more

affordable for a period of time Canadian

properties never experienced a similar

correction even after accounting for the

recent slump from their pandemic high in

2022 Canadian home prices have doubled

in the last decade compared to hourly

wages which have increased a meager 24

percent roughly over that same time

period now it's estimated that

homeowners require a minimum income of

one hundred and eighty thousand dollars

to afford the average property price of

750

000 the median family income sits at

roughly 121 thousand dollars or thirty

three percent below this amount but

that's at the aggregate level things are

craziest when you dive into Toronto

Ontario and Vancouver British Columbia

two of the top three most populous

cities in Canada with roughly a quarter

of the population between them average

prices in these two cities have reached

1.1 and 1.2 million dollars Toronto and

Vancouver respectively that's roughly

nine times the average economic family's

total income for both cities or double

that in some markets if you were hoping

for a detached home making the

traditional concept of home ownership

for young Canadians a bit of a pipe

dream in some areas

now for anyone outside Canada this might

all sound a little shocking to you

because if you look at a map of our

beautiful country you notice that the

one thing we aren't missing

is literal space Canada is the second

largest country in the world and ranks

just 38th in terms of population size

How could a country with so much of this

key ingredient struggle to house its

population

well well there are many rural townships

across the country where you'll find

more affordable housing Canada's

population is heavily concentrated

around its cities with roughly three

quarters of the population living in

large Urban centers and the density in

these areas is only going up between

2016 and 2021 Canada had double the

population growth of every other G7

country at 5.2 percent thanks primarily

to immigration vast majority of which

was to the country's larger cities and

in fact Canada saw its population surge

2.7 last year alone welcoming over 1

million people for the first time in its

history but while population growth

obviously plays an important role when

it comes to real estate immigration has

played an important role in supporting

the economy and Canada's aging

population not to mention there are many

cities in the U.S with a higher

population density than Toronto that

don't struggle with Sky High property

prices so what's causing in Canada's

Market to stand out in terms of

affordability

well simply put one of the key

differentiators here is a lack of Supply

Canada has the lowest housing supply per

capita out of the G7 Nations at 424

units per 1000 people with the federal

housing agency estimating that Canada

would need 5.8 million new homes to

restore affordability by 2030. 2.5 times

what the country is on track to complete

and while building more homes seems like

a simple solution here there are some

meaningful roadblocks to that objective

for one there's a lack of skilled labor

in the space with Canada experiencing a

record high of 80 000 vacancies in

construction part of the reason

immigration is actually viewed by many

as being part of the solution not the

problem bureaucracy and red tape have

also made building real estate in Canada

a particularly cumbersome Affair one

expert estimates it takes 8 to 10 years

to go from acquiring an undeveloped

piece of land to building the prop

property in Toronto and Zoning

restrictions imposed by municipalities

across the country have made the

densification of land incredibly

difficult in Toronto for example the

majority of land only allows for single

family developments with mid to high

rise buildings only typically being

permitted in limited locations despite

it being the most populated city in the

country of Canada this is actually why

that house from the beginning was listed

for so much it had the Zoning for a

larger property demonstrating just how

rare that is for some of these cities

now Canada's government has tried a few

things to solve housing affordability

such as a recently announced tax

sheltered savings account for first-time

home buyers a ban on foreign buyers and

a vacancy tax introduced at the federal

provincial and Municipal level in some

cases more attention has also been

brought to the zoning restrictions of

major Canadian cities

but we've yet to see meaningful progress

on the supply side of things in fact

Ontario's Premier Doug Ford recently

found himself in hot water for planning

to open the protected Greenbelt Iran

Toronto for development only to reverse

those plans on allegations of corruption

so yeah building more homes has been

easier said than done and this imbalance

of supply of homes with actual demand

for property has only been exacerbated

by The Rock Bottom interest rates of the

last 15 years or so and the resulting

inflow of investment Capital into the

space following the 2008 financial

crisis many central banks for developed

countries including Canada dropped their

policy rates to near zero but try and

bolster lending activity this caused

mortgages the loans for buying

properties to become Dirt Cheap while

making fixed income Investments which

now paid investors a lower yield a lot

less attractive as a result many

investors took their money and put it

into real estate given that it could be

bought with cheap debt rent it out for

extra income and had a track record for

actually appreciating over time now this

factor is obviously not unique to Canada

we've seen similar asset price inflation

in the US thanks to its low interest

rates but given how long it's been since

Canada has experienced a real estate

correction prices were already starting

off with a relatively High base

and with Canada's particularly resilient

reputation investors flooded in in 2020

it was estimated that one-fifth of all

homes in British Columbia Ontario New

Brunswick and Nova Scotia were investor

owned with this percentage being as high

as 42 percent in some subdivisions of

Vancouver with higher student

populations it is worth highlighting

that this investor demand has primarily

been domestic so far well non-resident

ownership is as high as 14.9 percent in

the student-centric subdivisions of

Vancouver across the province of British

Columbia the rate is much lower at seven

percent of Condominium Apartments and

2.5 percent of houses and while units

not occupied by their visual residence

it's at roughly seven percent for both

Toronto and Vancouver some of which may

be vacant this figure can also include

certain types of student housing or

other forms of housing which by

definition are not occupied by usual

residents but they're being mixed

figures and debate on how many

properties in Canada are truly left

vacant by investors and the like so

while foreign investors have had an

influence on pocket regions of Canada

instead it's truly the combination of

all these variables the policies

encouraging high demand and speculation

without a subsequent follow-up in Supply

and as Canadians have tried to keep pace

something else has crept up to pretty

concerning levels

as prices have outpaced savings buyers

have borrowed the difference

contributing to record levels of debt in

the country Canadian households had a

record dollar 85 of debt for every

dollar of disposable income in the third

quarter of 2022. with 75 percent of this

debt being tied to mortgages this is the

highest level of household debt among

the G7 Nations and makes Canadians some

of the most indebted people in the world

with household debt to GDP being higher

now in Canada than it was in the U.S

leading up to the financial crisis

now with the Bank of Canada recently

hiking its Central Bank policy rate from

0.25 to 5 to combat inflation we have

seen a cooling down in the space

recently with home prices and debt

levels in the country both pulling back

but in the near term these same rate

hikes have actually exacerbated the

affordability problem after all the rate

you pay on a mortgage is a determining

factor in the size of your monthly

payment with the Bank of Canada hiking

its policy rates so drastically we've

seen mortgage payments Skyrocket across

the country mortgage payments as a

percentage of income have reached 59.3

percent in the second quarter of 2023.

up from 43 percent just two years ago

this not only discourages new demand for

Real Estate perhaps an intended outcome

but it also hurts those already in the

market if you took out a 500 000 25-year

mortgage at the typical one percent

variable rate available to you on

January 2022 your mortgage payment at

the now 6 rate would be jumping from

roughly one thousand eight hundred and

ninety dollars a month to three thousand

two hundred and twenty two dollars a

month within the span of nine months and

this isn't just a hypothetical

possibility news outlets have already

started sharing stories about Canadians

who were convinced they were making a

fortune building investment for their

future and now face the possibility of

financial ruin as a result of their

skyrocketing monthly payments now you

might be thinking sure that sucks for

variable rate borrowers but exactly how

many home buyers opted for a variable

rate

well in the last few years the majority

actually you see when rates are at the

Rock Bottom levels during the pandemic

variable rates on mortgages were

actually offered at a substantial

discount to fixed rate mortgages with

banks wanting to pass along the interest

rate risk of these loans and since home

buyers had spent a decade in a low

interest rate environment many assumed

low rates would continue which has led

to one-third of mortgages in Canada to

be variable rate but wait there's more

in Canada fixed rate mortgages aren't

really fixed rate either rates are only

locked in for a period of typically five

years or less after which the mortgage

rate resets based on the market rate of

the time that means that over the next

five years virtually every Canadian with

a mortgage will see a financial impact

from these higher rates and while that's

scary enough there's one final Quirk

about Canadian mortgages that really

highlights how devastating this can be

for Canadian households with the

exceptions of Saskatchewan and Alberta

mortgages in Canada are recourse loans

this means that if you don't pay off

your mortgage in full lenders can go

after your personal assets to make up

the difference even if you relinquish

your house if prices continue to fall

Canadians who can't afford their High

interest payments may not be able to

recover the amount from selling their

house to pay off their mortgage which

won't decline in Step meaning they'll

still be making payments on that

difference even after losing all the

equity from their prior payments but if

the prospect of your property falling in

value below what you actually owe on

your mortgage wasn't bad enough

it gets worse because some Canadians are

actually seeing the balance of their

mortgage

increase three quarters of variable rate

mortgages in Canada are fixed payment

mortgages meaning that the borrower

makes the same dollar payment each month

regardless of what interest rates

actually are fluctuating rates still

impact the policy but they simply change

how much of the payment goes towards the

principal versus the interest expense if

rates go down the mortgage will actually

be paid off faster but if they go up a

larger portion of the payment will

simply be going towards that interest

expense instead of paying down the

principal and when they go up as

drastically as they did in 2022 they can

reach what's called their trigger rate

where the fixed payment is entirely

taken up by interest and home buyers are

no longer paying down their mortgage

balance and when rates go past this

point borrowers can either increase

their payments pay off a chunk of their

principal or if none of those options

are available apply the interest back to

the principal something called a

negative amortization mortgage and while

this might sound like an impossible

possible nightmare scenario where

unfortunately already seen it happen the

Jordan estimated back in May that over

three quarters of variable rate fixed

payment mortgages had surpassed their

trigger rate a figure that's surely

higher now given the subsequent rate

hikes we've seen and more recently three

of Canada's big six Canadian Banks

disclosed that 20 percent of their

mortgage portfolios consisted of

negative amortization loans so yeah

that's how crazy things have gotten in

Canada but it does all beg the question

why haven't things crashed yet

with everything we've covered so far you

would expect that delinquencies in

Canada would be skyrocketing right about

now yeah as of recording the most recent

delinquency rate for mortgages is near a

record low at 0.15 percent there are

some possible explanations as to why

this is the case with one of them being

that given the pyre Stakes many

Canadians are trying to tough out the

turbulence in hopes that things will

moderate you see during the pandemic

Canadians actually built up sizable cash

savings with checkable and at notice

deposits Rising 40 between 2019 and

2022. this has given Canadians a bit of

a buffer to make these higher mortgage

payments there's also the fact that when

it comes to fixed rate mortgages and

even some of those variable rate ones

those payments obviously might delay a

delinquency by not changing immediately

even if in some cases it's actually

extending the overall cost of the

property to the buyer meanwhile new

listings are so far down from a couple

years ago suggesting that those able to

are waiting to sell even if demand Falls

an InStep decline in Supply could keep

prices elevated it all goes to show why

it's so difficult to predict where

prices will go in the short term on the

one hand higher rates could go higher

still and for some widespread

deleveraging with demand for properties

especially from the investor group

following listing surging prices for

Real Estate declining and they're likely

being a severe Financial impact on the

country given that 21 of national wealth

and 1.3 million jobs are tied just to

residential investing on the other hand

with inflation down from its peak levels

there is a chance we see more progress

here and that central banks actually

consider cutting rates which could be

enough to alleviate pressured buyers

many lenders are also actively reaching

out to borrowers to try and ease the

contract terms and extend amortization

periods with Canada generally having

more conservative lending practices

debt-laden home buyers may get whether

the storm with a Re Max report

highlighting the low loan to value

ratios of Toronto and Vancouver and the

shrinking percentage of buyers with

credit scores under 660 in the report

titled Canada housing market risk low

despite short-term contraction they are

a real estate agency so do keep that in

mind what is clear however is that the

current trends all taken together

are not sustainable and the current

housing crisis does face the risk of

evolving into a financial one without

meaningful government action and policy

change and regardless of the outcome the

situation is already hurting Canadians

across the country so far we've only

talked about aggregate statistics but

within that there are a lot of people

falling through the cracks none of the

typical stress tests apply to mortgages

in Canada would have considered these

surging rates we've seen and while you

can blame those falling behind on

mortgage payments for buying into a hot

Market when they couldn't afford the

surge in rates most people aren't real

estate experts and not many people could

have predicted the surge of rates we've

seen and given how much of real estate

is commission based even those in the

industry are unfortunately more

incentivized to focus on generating

sales than ensuring budget feasibility

when it comes to buying a house with

many buyers being told that so long as

you could get approved for a mortgage it

was worth buying a property regardless

of your situation so if you're

considering buying real estate

especially your first property you

should focus on affordability in Risk

tolerance as opposed to financial gain

it's true that real estate can be a

lucrative investment and even with all

these negative variables prices could go

up from here but rather than trying to

time your purchase for the next crash

worrying about missing out or deciding

to short the market for your first home

you should really focus on your personal

wants and whether you can afford the

payments and the volatility the risk of

payments going up home prices do tend to

appreciate over the long term but that

won't matter if you can't afford things

in the near term I'll leave a link to a

helpful resource from the Canadian

mortgage and housing corporation on home

buying but the one thing I'll point out

from there is the recommendation that

housing costs do not exceed 32 percent

of your average before tax monthly

income but you should also consider your

level of savings and other risk

tolerance variables when buying a home

I'll also include a link to the home

school series by global news a set of

Articles targeted at educating new home

buyers they were actually written by my

good friend Craig Lord who you might

know has helped with my channel in the

past so definitely go check those out if

you can't afford a property right now

you can consider a less densely

populated area if your situation allows

it or you can park your money in other

Investments so it continues to grow

while you wait if you're really worried

about missing the bandwagon there are

other Investments such as real estate

investment trusts that can provide you

some real estate exposure without you

needing to put your whole financial

well-being at risk and if you are

currently experiencing strain from your

mortgage speak to a professional whether

that be in a financial planner or

advisor a certified credit counselor or

a licensed insolvency trustee they can

help you decide whether you should sell

the property hold through the turmoil or

consider other options and to be clear

none of this is to suggest that dealing

with the situation we find ourselves in

will be easy I haven't even talked about

renters who are likewise seeing the

pressure of High real estate properties

and high interest rates on their monthly

budgets but at the personal level there

are things you can do to help better

prepare yourself for whatever comes of

the Canadian real estate market whether

prices continue moving painfully onwards

or we see a crash in real estate values

but that's a video thank you for

watching if you liked it please do make

sure to like subscribe all that good

stuff it does help the channel

tremendously and if you're a Canadian

who's bought a property in the last few

years I'd be very interested in hearing

your story and what your thoughts are on

all of this I also want to give a shout

out to another fellow Canadian

influencer although I'm guessing he'd

probably take insult at that label

Millennial is someone who's been

posting a lot of great stuff about the

state of the Canadian real estate market

on Tick Tock and here on YouTube albeit

to a smaller audience and I know I've

been critical of Finance content on Tick

Tock in the past but his stuff is great

I particularly like his Canadian homes

versus literal castles series and I did

actually come across a few of my sources

for this video from him so be be sure to

check him out anyway thanks for watching

and as always

be safe out there