National Economy

[whatnext]

Originally Posted by Build.It

Our equivalent to the 1929 stock market crash is the housing collapse. Everyone invested in real estate throughout the 2010s and early 2020s, and now people are losing their shirts.

The decline in prices has been nothing close to a “collapse” at this point. It certainly is nowhere near close enough in our biggest cities to bring housing g back to affordability.

[kwoldtimer]

A 10 -15% decline over two years is more a reset than a collapse, even if the next couple of years see the same trend continue.

[Build.It]

Kitchener is down by over 20% since the peak.

It's also not over yet - we are just beginning the renewal cliff with the 1.5% COVID mortgages coming up for renewal in 2025 and 2026.

Bare in mind the only loss that matters for people is their equity. Even if the price of the house only went down by 20%, if they only had 20% equity to begin with, it might as well be a 100% crash for that individual.

[kwoldtimer]

Originally Posted by Build.It

Kitchener is down by over 20% since the peak.

It's also not over yet - we are just beginning the renewal cliff with the 1.5% COVID mortgages coming up for renewal in 2025 and 2026.

Bare in mind the only loss that matters for people is their equity. Even if the price of the house only went down by 20%, if they only had 20% equity to begin with, it might as well be a 100% crash for that individual.

As long as you can still pay the mortgage, the equity in a house that's not on the market seems moot (unless you can't refinance). But one will bear it in mind.