There are some new themes emerging in the residential real estate market in this country, conversations and topics we haven’t heard for a long time or ever.
One centers on the fact that home prices in the big, expensive cities of Vancouver and Toronto are coming down.
Now, normally that would be good news… cheaper houses are within reach of more people. Yes, that is true for those who are looking to buy tomorrow. But, for those who bought yesterday, it can be trouble. They may have bought at the peak, just in time for the value of their largest personal investment to go down.
Fifteen years ago in the US banking crisis where mortgage values were larger than the price of the house that secured them, people threw the keys to the bank and said… take it.
And a new report from TD Bank says the uncertainty caused by tariffs has caused Canadians to rethink their entire approach to a mortgage. They split one-third, one-third, one-third on whether interest rates will go up, down or stay the same.
