Weekly Market Update, Dec. 14/18

Condo prices headed straight to hell. Yikes.

Is there any more data (or even anecdotes) around the condo price drops? There are a few buildings I've kept an eye on for a while, mostly across the south side, and haven't seen any significant price drops. There's not a lot an average will tell you here... this could mean price drops in a specific area of the city, fewer high end sales/more sales shifting to cheaper units, etc.

I've seen a handful of periods of high supply and low demand too, which hasn't typically typically resulting in major price moves over the last 10 years - it would seem new mortgage rules are the most significant factor here, but if anyone else has thoughts on what's ultimately driving the dropping the 4 week moving average let me know.

Matt,
I'd say the price drop has more to do with Trudeau blundering on the pipeline and Notley doing everything she can to kill oil production in Alberta.

GM prices are dropping in many parts of the globe. I think the issues are macro as much as micro. Part of the cycle.

Also prices are dropping because of the higher interest rates and the new stress test.