Originally Posted by osmo
Corrections will happen all around. It will be diverse all the way to neighborhoods. We talk Vancouver and Toronto but numbers wise the Oakanagan Valley is probably in the worst shape and already starting to put up high foreclosure numbers. A lot of boomers threw money into there for retirement. People say when that area goes of the rails then the game is done.
Well, a lot of BC even outside of Vancouver is much crazier than similar areas in other parts of Canada and I think it will see more of a "correction". Kelowna is more dependent on resort type development than most towns. Vancouver Island is very expensive despite not having any major cities and not much of an economy.
Halifax seems to be in a fundamentally different situation. It's going to have lots of job creation for the next few years unless something goes really wrong but its housing prices have only gone up modestly -- something like 2.9% last year, for example. It also, as far as I know, has almost none of the kind of frenzied condo buying you see in some other markets. If demand for condos were to drop to zero tomorrow there wouldn't be the same kind of inventory on the market you'd see in Toronto or Vancouver. Maybe housing prices will crash in Halifax too but I could see them staying around the same while BC's prices drops. There might be some other Canadian markets like this too. I don't know how expensive Winnipeg is, for example.
Moncton is one of the fastest growing cities in Canada but you can still easily get a house there for $160,000. I don't see those prices dropping as much as the $600,000 shoebox luxury condos in Vancouver unless something really bad happens to the local economy.