Look at Larry's graph, it shows we did break the previous lows for SFH average prices.
I think this will have a significant effect on RE psychology in this bubble city.
Expect a rear-guard defence from the RE interests claiming that this is a buying opportunity and when that fails that RE must be supported or we will be in economic trouble (which we could well be).
Finally, Bears will be blamed as lacking civic responsibility for wishing the demise of the RE bubble. As if wishes have anything to do with it. To be honest these bogs have very little effect on the market, despite all the words and time we expend on them over the years. They have almost no effect compared with the ill-thought out actions of doubling the CMHC cap or dropping rates to near zero.
Have a great Canada day!
