In the previous post, Duncan raises an excellent point about Canadian real estate. Let’s not forget that in the United States, there were plenty of people who thought real estate prices would keep going up indefinitely. In hindsight, it’s easy to see the bubble that was about to burst, but many who were inside it were completely oblivious. Maybe the Canadian market is rock solid. Maybe this unprecedented run-up in real estate prices, to the point where the average Canadian can’t afford a home, is completely sustainable. Maybe.
I’m reminded of this video, which cleverly translates a century’s worth of US home prices into a roller coaster ride. I wonder what happens at the end?