Canada's Housing Market Is Not Crashing

Canada is in the midst of a major slowdown in housing activity, brought on largely by a significant increase in interest rates. Coming off from one of strongest run-ups in house prices in decades, sharply rising borrowing costs have significantly eroded home affordability and curtailed homebuying activity, especially in expensive markets such as Toronto and Vancouver. Although home prices are in the process of a major correction, fears about a housing market crash are somewhat overblown.