The average Canadian home was said to be worth just over $500,000 according to a CBC article. And while figures show houses prices are down 10 per cent since April, Don Pitts from CBC says consumers should take this comment with a grain of salt.
However, the high house and condo prices currently are deterring young couples from buying properties, especially if they think prices are going to suddenly drop.
Especially as interest rates rise, buying condos to rent using borrowed loans may not be something worth getting excited about.
Pitts notes that we can’t just speculate that there will be a housing drop. Inflation figures tell us steel, lumber and stucco prices—all needed to build houses—have stayed the same. It’s the price of land and finished product that has gone up in price. So, if you’re just speculating, the risk might not be worth it.