The Pandemic policy response saw a frenzied mix of debt forbearance, government handouts, policies aimed at increasing debt to stimulate home buying and speculation, mortgage rates under 2%, and an immigration surge concentrated in a few areas, especially around post-secondary schools.

Not surprisingly, as interest rates normalize, immigration slows, and the housing bubble deflates, all hell is breaking loose, especially in previous ‘hot’ zones.

My hometown, Barrie, Ontario, located one hour north of Toronto, is an example of the great unravelling now converging in the form of frozen real estate, falling home prices and rents, rising debt defaults, bankruptcies, a weak job market, homelessness making national news, and a college shuttering entire campuses.

See, Georgian College Closes Two Campuses and Decline in international students forces post-secondary job cuts; also, Barrie, ON declares state of emergency over homeless encampments and, Couple faces bankruptcy as Toronto condo market dives, as well as Why are home prices dropping so fast?

Similar problems are evident all over North America.

Where property prices and debt levels rose the most since 2019, affordability remains horrific, and strife is compounding.  It’s a cycle, folks. The more magnified the boom, the more magnified the bust.

John Pasalis, president Realosophy Realty and Steve Saretsky, realtor with Oakwyn Realty talk to Financial Post’s Larysa Harapyn about the state of Canada’s real estate market from coast to coast. Here is a direct video link.