The market self adjusts. If you can't sell your home for $750,000, you'll price it for less. We don't need the government coming in and curtailing someone's ability to buy a $750,000 home which they saved up for, qualified for, and can afford to maintain the mortgage on ...until the government introduced a measure which saw that same buyer barely qualify for a $600,000 home.
I disagree, during the time the stress test was introduced that 750k listed house would attract 10 bidders and then sell far in excess of the listed amount
We should also discuss government keeping interest rates artificially low where buyers were more concentrating on what they could afford by their month mortgage payment than thinking that interest rates could double or triple
Ditto for government turning a blind eye to all the illegal basement suites or "mortgage helpers". People saw it as free money to cut their mortgage payment down and how instead they could get an even bigger house or offer even more money because they had say 800 coming in every month tax free, so instead of paying 2800 per month on their mortgage they only had to pay out 2000
We have also seen over the last 10 or so years that Canadian homeowners are using their homes as piggy banks and drawing heavily on the equity.
As a guess, we've seen houses that sold for 250k 20 years ago now selling for $1+ million
Meanwhile my mortgage business, with rates starting at 20% is skyrocketing. I get to pick and choose there are so many people begging for money