Canadian Housing Market CRASH: Banks Taking Massive Losses as Foreclosures Soar!

It's got the power of sale notices on

the door there. 40% gone. Power of sale

$632,000

gone. Power of sale 50% loss. Possibly

be a power of sale as well.

>> Itsybitsy little gully right now.

>> Countless power of sales and losses of

over 50%. In real terms, over 70%.

>> It'll be painful. as we're going to get

into. Even the mainstream media cannot

hide what is going on in Toronto. So,

Toronto home prices slip back to 2020

levels as turmoil lingers here. So, home

prices in Toronto fell to their lowest

level in more than 5 years as the

outlook for slow economic growth and

broader global turmoil make prospective

buyers cautious. Can see what happened

on this chart, can't you? Don't look

good, does it?

>> Nope.

>> And here's the thing. This all started

when they just hiked by 25 basis points.

I mean, do you remember that

>> governing council took the decision to

raise the policy rate by 25 basis points

to half a percent.

>> That's all it took to tank the market in

Toronto. Nearly 75% of GTA neighborhoods

saw homes sell below asking price in

March. Report fines. Remember when they

were all selling above asking price?

Yes. Yes. Yes. Yes. Yes. I mean, that's

not the case anymore. So, let's start

off here. Shazzy. Once again, investors

were told multiplexes were gold. Back in

2022, an investor paid $885,000

for this Niagara Falls multiplex. But

right now, power of sale, 50% loss. And

in real inflation adjusted terms, it's

way more than that, as we know on this

channel. So, let's take a look around.

So, this just sold $460,000

as you can see here. I mean, it's a nice

investor multiplex as Shazzy was talking

about. and they were all the rage back

in 2021, 2022. People were thinking they

can make a great return with all this

immigration and everything like that.

And now the bank or the lender just took

it right from them because they weren't

paying. So again, it just shows the hurt

and this is well in need of hundreds of

thousands of dollars in renovations to

get this up to scratch. I mean, look how

old that fridge is. You could hide in

there if a nuclear bomb hit Canada

>> to infinity and beyond.

>> But anyways, you can see here, $460,000.

But get this guys, back in 2022,

of course, in April, $885,000.

So, a massive 50% loss here. And then

you've got this Bmpton home was listed

near 2.4 million. The market didn't

agree. After multiple attempts, it

finally sold for $1.65

million. $632,000

gone. So, you can see it. And it looks

like a nice house. This one will again,

take a look around. It looks like the

type of home that a lot of people middle

class would aspire to own later in their

life if they worked hard and did well,

but it's only reserved for property

speculators. So anyway, you can see this

is a really nice house here. It's again

on one of those small lots where you've

got a fishbowl backyard where you know

you go out into your yard and everybody

from like five or six houses can see

into your backyard.

>> Excellent.

>> And you just have to remember guys, do

you think that 1.65 million is

affordable? I mean this is a higherend

home for sure. So you would expect it to

be like maybe 7 or 800,000 maybe

$900,000

at a push. Maybe a million but not $1.65

million.

>> You okay?

>> No.

>> And real estate is location, location,

location. This is in Bmpton, guys.

>> Oh my god. Oh my god.

>> Patrick store.

So, I mean, still in 2026, you've got

houses selling for 1.65 million in

Bmpton, even with the steep losses. So,

this is a massive loss in Toronto. And

of course, it's a power of sale, build a

blowout, as you can see here, builder

bought lot in 2021 for 2.2 million in

Toronto. Demolished the house and

subdivided, built two ultra thin

detached home. lender just took over and

sold one of them for 1.3 million. Shazzy

put, he doesn't even know the extent of

the loss here. Can anyone guess? And

somebody calculated that they lost

between 1 million and 1.5 million there.

>> Ouch. That's going to hurt.

>> So completely crazy when you really

think about it. This is the house here.

So as you can see, an ultra thin

detached house. I mean, yeah, it's just

crazy. Who was ever going to pay over 2

million? But back in 2022, people were

paying those insane prices for houses. I

mean, that was literally happening.

People were literally going insane about

houses. And then you've got this massive

loss here. As Shazy puts back in 2022,

this Hamilton townhouse sold for

$950,000.

After multiple listings and price cuts,

it finally sells for 584,000.

40% gone in Hamilton. And it just sold,

as he said, $584,000.

So, this is a house in Hamilton that

you're getting for $584,000.

Obviously, an older house, you're going

to have a lot more maintenance with a

home like this, but this is what it gets

you. And it's kind of crazy to think

about what you get for your money in a

place like Hamilton compared to Toronto.

But guess what? That is exactly what

drove all the craze into Hamilton back

in 2021 and 2022.

>> I don't think prices will be going down

uh anytime soon

>> because people are like, "Oh my god,

there's so much more value here because

things are cheaper." They didn't think

about the economics. They didn't think

critically. Everybody was just about

their emotions.

>> What did you say?

>> And that's exactly what drove up the

price. I mean, it's obvious humans

operate in these same patterns across

all markets. So, as you can see here, it

was sold $950,000

at the peak in 2022 and it just sold

$584,000.

Completely crazy. This is another major

reset as Shazi is saying in Niagara

Falls. This home sold for $750,000

in 2022 and it just closed at $400,000.

This is in Niagara Falls. So, I mean,

crazy. Looks like it could possibly be a

power of sale as well as there's no

other photos apart from that. So, I

mean, again, just a crazy history of

being leased, of listing at a bunch of

different prices, and then eventually

getting down to $400,000.

So, it's just another crazy market chase

that you're seeing. And you see this

repeat time and time again when it comes

to the housing market is you just have

people chasing the market down, thinking

everything's going to be okay. There's

going to be no problems ahead.

>> You got it.

I'll just wait for the market to pick

back up.

>> Itsybitsy little gully right now.

>> I mean, the thing is people just don't

think things through anymore. And that's

how they end up being saddled with these

humongous losses. And if you look at

real residential property prices for

Canada, that's when things get really,

really ugly for all these losses here.

So basically I mean right now you're all

the way back essentially to 2016 2017

prices here. So you've erased 10 years

worth of growth Canada's housing market

essentially in a lost decade there.

>> You did this to yourself

>> and basically with all that price being

erased a lot of it has been to do with

inflation. Remember the first article we

talked about showed the prices are now

at 2020 levels. That's about 6 years

worth of price gains raised. But if you

adjust it for inflation, you're going

all the way back to 2016. That's another