Back during the subprime mortgage housing bubble, house prices increased at a much more rapid pace than money supply.
But in this more recent pandemic-liquidity house price surge, it has come with a lot of money supply growth.
That's part of the reason I'm not too bearish on house prices in nominal terms. I think a lot of those prices are going to grind kind of sideways for a while as other things run hot.
Canada has the lowest mortgage originations on record in 2024. Prices in many areas have already started correcting.
https://www.youtube.com/watch?v=Q-ryOwyGmbY
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