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April 1, 2017 | Some Good Big Picture on the Canadian Realty Cycle

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

For some reason Huffington Post does not provide embed codes for its videos, so I can’t post them here directly on JD, but they have done a few excellent big picture reports on the history of Canadian home prices. This one focuses on Toronto in particular (although boom-bust cycles play out simultaneously in varying degrees across most of the country).


They point out that prices have fallen 37% of the time over the past 6 decades (23 of the past 63 years). Boom cycles end with high leverage, indiscriminate buying and rich valuations followed by a bust and years where prices remain lower than the prior cycle peak. This time is likely to be the same.

If we are owning real estate today in Canada, we should be comfortable holding it and paying all the associated costs and upkeep for the next decade. If that will not suit our finances, now is the time to consider any changes needed.

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April 1st, 2017

Posted In: Juggling Dynamite

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