What was Canada's last housing crash?

Canada’s last housing crash, which lasted roughly from 1989 to 1995, wasn’t as catastrophic, but it hit certain markets especially hard. By August 1993, the average home price in Toronto, for example, had dropped by 28% from its April 1989 peak, bottoming out at $189,000. What would a Canadian housing crash look like?

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?

Will Canada's housing market crash in 2023?

Canada’s housing market is correcting in 2023, as buyers readjust to higher mortgage interest rates. Sales and price declines should flatten out, and eventually reverse, once interest rates come back down. High demand for housing and a low supply of homes for sale should keep the market from an all-out crash.

Why did Canada crash in the 1990s?

The 1990s crash in Canada resulted from a combination of inflation, recession and job losses spilling over into the housing market. In the U.S., it was shady subprime mortgages that put U.S. homeowners into loans they had little chance of paying back. Lack of predictability.