In this episode, David takes a hard look at the supposed connection between the Canada–U.S. trade war and the Toronto real estate market, and argues that much of the discussion is being driven by fear, confirmation bias, and headlines that don’t actually explain how the housing market works. He breaks down what would actually have to happen for a trade war to seriously damage real estate: buyers losing their down payments, borrowing costs increasing dramatically, or mortgage payments rising enough to force homeowners to sell.
David examines recent headlines about the trade war and real estate, including stories focused on multimillion-dollar Toronto homes, “roller coaster” interest rates, and sellers supposedly preparing to take steep losses, but asks the question: where’s the evidence? And if interest rates are relatively stable while the stock market is up, is the housing market really on the “roller coaster ride” we’re being told about?
In This Episode:
- 03:15 – Confirmation bias and the housing market
- 06:45 – Who is actually affected by the trade war?
- 09:54 – Questioning the headlines
- 13:37 – Luxury real estate vs. the actual housing market
- 20:11 – Are sellers really “trying to bail”?
- 23:32 – The Bank of Canada rate reality
- 28:25 – Supply, demand and affordability
- 31:02 – Why the trade war may actually reduce rate-hike pressure
