Although Canadian real estate prices
fell for the third consecutive month
, you still can't call it a crash. Rather, we're at an inflection point where a wait-and-see approach prevails.
There are three possible reasons for this crossroads: Recent regulations are making it harder and more expensive for foreign buyers to purchase property; there's an overall sense real estate prices are expensive and due for a correction; and/or recent rate hikes, and the potential for future hikes, are giving buyers and sellers pause.
As you well know by now, I'm most worried about a scenario where interest rates continue to rise. Should this happen, I believe many people may not be able to afford their current mortgage payments, if variable, or future ones when renewing.