What happened to house prices in Canada in 2008?

In 2008, US house prices plunged by one-third; meanwhile the market in Canada dipped just 8 per cent before rebounding on the back on ultra-low interest rates. Canadian households now own $5.7tn worth of property assets, according to Statistics Canada, nearly three times more than 15 years ago.

What would happen if the Canadian housing market crashed?

A Canadian housing crash would also require a change in home buying sentiment, where buyers avoid the market because of the perceived financial risk rather than prioritizing home ownership. A shift like that would likely contribute to home prices staying lower for longer. What is a housing market correction?

Could residential property be Canada's lifeline after the 2008 financial crisis?

But the country is also pinning its hopes on residential property being the lifeline it was in the wake of the 2008 financial crisis, when a debt-fuelled housing boom became a driving force of the Canadian economy. Canadian policymakers no doubt hope previous examples of the market’s resilience play out once more.

Does Canada have a real estate crash?

There’s no fixed definition for a real estate crash, but recent crashes in Canada and the U.S. have seen home prices drop by double-digits and remain suppressed for several years as buyers avoid what they see as a risky market. Will Canada’s housing market crash in 2023?