Adam, I am completely bearish on real estate but I greatly appreciate hearing sensible comments from those who benefit from a bullish market. I am actually a home owner with no debt, so my views technically affect me negatively, but I don’t want to be blinded by that. If we could all just agree that we got a little greedy and pushed things to unhealthy levels we would better off, at least in the long run.

HAHAHAHA! Oh, is that all?

Every banking system on the planet is preparing for it and he’s like “OMG BEARS!”

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Uh… that’s not what interest rates are.

Do you know how a fractional reserve system works?

If Canada doesn’t keep pace on interest rates then we will hit hyperinflation.

If you’d like to live in that you can always move to Venezuela…

Condo market sales are also down down down as not many people can qualify for the condo market anymore.
(Condo market sales down 11% in Toronto June 2017 v 18, Condo market sales down 21% in Vancouver June 2017 v 17)

As this continues the prices will collapse as inventory continues to increase and more and more new inventory is added to the mix (record levels upcoming), as has happened with the detached market which is down about 18% from 2016 highs and will continue to drop another 30%+ over the next few years.

These are pretty low-key measures for countries and areas going through mass housing crisis. Singapore, for example, brought in whole bans on foreign ownership of various residential homes.

Don’t see a reason why not to implement similar bans in Canada.

Be careful, because GTA market is overvalued by at least 30%. Nobody knows when it corrects and how deep it will be but it would be smart to calculate risks for that scenario as well. As far as I understand if borrower defaults you will only receive money in case there are leftovers after bank’s foreclosure.
Good luck with your business.

Should government intervene when RE prices grow 30% in 3 months when it’s clear bubble? Most likely. Seems like everyone pretty much agree here.

If you are OK with government trying to slow down the market and engineer “Soft landing” you should understand one thing: Bubbles never end up in “Soft Landing”, they only end up in “Hard landing”. Study history of bubbles and you will understand why it’s happening.

So it’s pretty much doesn’t matter what government is trying to do now as long as they try to slow down the market it will eventually crash it and it’s not their fault. They are doing great job at protecting as much important stuff as they can right now.

If they default they lose the property. It’s not the end of the world.
I didn’t say prices will never rebound. I believe we (real estate industry) are in need and deserving of some short term pain. 2016 will go down as a once in 50 year episode whereby the masses were blinded by greed and desperation.
Long term (10-20 years) the money lending business is the way to to.

If you are indeed a private lender do you understand that your prediction will cause you problems?
As far as I know private lenders provide short terms loans(1-2y) and then borrowers refinance.
If borrowers came to you that means their finances are not great or shady.
When prices fall 10-15% how do you think they will be able to refinance?