1) The market will go up and down in cycles. The higher it goes, the farther it has to fall. And it will fall.
2) House prices are connected throughout price ranges. When houses at the top of the market fall, everything below it will go down as well. This means big cities and small cities. Expensive houses and cheaper houses.
3) There are many indicators of a market correction in Canada specifically, if you know where to look. Some of the indicators include: The Canadian government stepping in and imposing taxes designed to slow the market, Chinese government changing regulations to stop the outflow of money, Canadian banks such as BMO, Scotiabank, RBC and TD…..pretty much all of them are worried about a housing bubble, the recent change in American interest rates (Canadian rates will follow), changes in Canadian mortgage rules to make it more difficult to get a mortgage, and finally my favorite can be found below:
People are betting that the Canadian housing market will crash. Think Christian Bale’s character in the movie The Big Short.