You have it completely backwards. Housing demand is driven by real immigration/population growth, not real estate agents flipping to each other. 400,000 immigrants last yr, 430,000 this yr, 450,000 next yr. Soon it will be half a million a yr, with most of those immigrants moving to Ontario. The most recent Ontario Provincial housing task force reports says we need 1.5 MILLION homes in the next 10 years. That is real demand, that is unless you want to stop immigration. Projects that get cancelled only drives demand for existing supply higher. A housing crash is about as likely as immigration stopping. The day we stop immigration is the day I’ll sell my house & rent instead. My in laws immigrated 60+ years ago, they bought their semi in Toronto for under $30,000. Another 50 yrs from now you probably won’t be able to buy any home for under $10million due to both inflation & demand increases. Not buying now will be a huge mistake. The risk is to the upside not downside.

Project failure means less demand, especially considering the number of projects that have been sold exclusively to real estate agents.

True, but will the Bank of Canada be pressured no to raise rates, and go against their mandate to bring sound money and low inflation to Canada?

It’s unfair that the working class and the savers get screwed big time while those who own real estate get massive loans for low rates and HELOCs to fund a next new car. I have no pity for those who paid a mil for a cottage in the middle of Ontario or Winnipeg.

This particular problem wasn’t caused by rising rates but by extending cheap money / low interest rates triggering inflation. The very thing that fueled Canada’s Real Estate Boom is destroying it.

A total of 0.75% in interest rate hikes result in this. Imagine another one time 75 basis point hike in June. Will the politicians, in collusion with the real estate industry stop the Bank of Canada from doing its mandate, sound money?

why would projects collapsing burst real estate bubble? if anything it limits supply and inflation increases cost to build so real estate prices may climb off inflation like everything else.

All it took was for overnight rates to go up to 1% and the entire Canadian real estate industry is already flipping on its head.

Kind of nips the whole narrative of robust, sustainable demand in the bud.

I think the big “Oh crap!” moment for many will be when the stories of those pesky corporate investors and private equity firms mass liquidating start to come out.

What would have been the likelihood of completion had this been a stacked townhome community of 75 to 100 units instead of a building? I’m not sure that any of the GTA municipalities have factored any of these issues into their future growth plans and density plans.