Canadian Real Estate VS Stagflation: 1980s Replay?

#canadarealestate #stagflation #canadianeconomy The biggest risk to Canada’s real estate rebound is stagflation — a brutal combo of rising inflation and high interest rates — and a new Globe and Mail report warns it could drag home prices down even further. This video explores how stagflation crippled Canada’s housing market in the early 1980s, what that period looked like for home prices, and why today’s over-leveraged borrowers could be even more exposed. With mortgage renewals rising, debt-to-income at historic highs, and inflation proving stubborn, the risk of a repeat housing correction is real. Key data from StatsCan, the OECD, and the Bank of Canada offer insight into what could come next. The impact of small rate hikes today could rival the massive spikes of the past—thanks to decades of housing inflation. Links: Canada’s housing market was poised for a comeback. Then trade war jitters set in: https://www.theglobeandmail.com/business/article-canadas-housing-market-was-poised-for-a-comeback-then-a-trade-war/ Tariff turmoil means Canada’s housing market is ‘treading water at best’: https://globalnews.ca/news/11132528/donald-trump-tariffs-canada-housing-market/ What is ‘stagflation’? A closer look at the economic ‘double kiss of death’: https://globalnews.ca/news/11147142/what-is-stagflation/ Housing downturn worsens as border tensions disrupts Canadian market stability: https://www.wealthprofessional.ca/investments/alternative-investments/housing-downturn-worsens-as-border-tensions-disrupts-canadian-market-stability/388961 January home sales at lowest level since 2009: CREA: https://www.canadianmortgagetrends.com/2023/02/canadian-home-sales-january-totals-at-lowest-since-2009-crea/ Monthly Mortgage Payment as a Percentage of Income: https://wowa.ca/infographics-finance-realestate-canada/monthly-mortgage-payment-as-a-percentage-of-income-1975-to-2024 What Is Stagflation, What Causes It, and Why Is It Bad?: https://www.investopedia.com/terms/s/stagflation.asp Infra-Annual Labor Statistics: Unemployment Rate Total: 15 Years or over for Canada: https://fred.stlouisfed.org/series/LRUNTTTTCAM156S Real Residential Property Prices for Canada: https://fred.stlouisfed.org/series/QCAR368BIS So How Does Today’s Mortgage Payment Compare To 1981: https://brokersforlife.ca/so-how-does-todays-mortgage-payment-compare-to-1981/ THE OIL-PRICE SHOCK AND THE CANADIAN HOUSING MARKET: https://betterdwelling.com/wp-content/uploads/2016/08/special-report-3mar2015.pdf Indicators of financial vulnerabilities: https://www.bankofcanada.ca/rates/indicators/indicators-of-financial-vulnerabilities/ Five examples of Canada’s dysfunctional housing market and the Home of the Week: Canadian real estate news for July 5: https://www.theglobeandmail.com/business/article-real-estate-housing-news-july-5/ CREA Average Price History: https://www.crea.ca/files/mls-hpi-data/Forecast_data_October_2024.xlsx Interest Rates: Immediate Rates (24 Hours): Prime Rates: Total for Canada: https://fred.stlouisfed.org/series/IRSTPI01CAM156N Income of individuals by age group, sex and income source, Canada, provinces and selected census metropolitan areas: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=2.1&pickMembers%5B2%5D=3.1&pickMembers%5B3%5D=4.1&cubeTimeFrame.startYear=1981&cubeTimeFrame.endYear=2022&referencePeriods=19810101%2C20220101 Bank of Canada rate hikes in 2026? National Bank thinks so: https://www.canadianmortgagetrends.com/2025/01/bank-of-canada-rate-hikes-in-2026-national-bank-thinks-so/ Mark Mitchell – Mortgage Broker London Ontario 920 Commissioners road east London, Ontario N5Z 3J1 Phone: (519)860-2102 (Call or Text) MarkMitchell@LondonOntarioMortgages.ca Brokerage Lic: 10464 Broker Lic: M16001479 https://www.LondonOntarioMortgages.ca – Apply Online!! Youtube Channel: https://www.youtube.com/c/MarkMitchellMortgageBrokerLondonOntario Subscribe NOW for more Mortgage/Financial News/Videos. Follow me on Social Media: Instagram - https://www.instagram.com/mortgagebrokerlondonontario Facebook - https://www.facebook.com/londonontariomortgages Twitter - https://twitter.com/londonmortgage1/ LinkedIn - https://www.linkedin.com/in/mark-mitchell-london-s-mortgage-broker-197842123/ TikTok - https://www.tiktok.com/@mortgagebrokerlondon?lang=en Commentary on this Channel should not be considered financial advice.