As Hillard Macbeth says, it's the First Time Buyers and Investors who wake up from the real estate trance first.
Hillard makes the point that interest rates are so low that a soft landing in Canadian real estate is not probable. What is more likely is a hard landing and a real estate correction of 40-50%, perhaps over a decade.
Perhaps my Case Study from last year woke a few people up.
CBC's Amanda Lang interviews investment manager Hillard MacBeth, author of the book "When the Bubble Bursts: Surviving the Canadian Real Estate Crash."
History, Charts & Curated Readings
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'