Hub Podcasts How bad is Canada’s condo crash?
Sep 23, 2025
Ron Butler, an experienced mortgage broker and housing market commentator from Butler Mortgage, joins to dissect Canada’s chilling real estate crisis. He highlights the surge in foreclosures not seen since 2009 and the cascading effect of power-of-sale properties dragging down neighbourhood prices, particularly in the condo market, which he describes as a 'horror show.' Discussion shifts to the disconnect between recent rate cuts by the Bank of Canada and their lack of impact on housing recovery, raising questions about future policies and market direction.
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Foreclosures Reset Local Comparables
- Power-of-sale foreclosures create new lower comparables that pull down neighbourhood values.
- Ron Butler says these lower comps can materially reduce homeowners' reported equity and local prices.
Small Condos Are The Epicenter
- The condominium segment under $550/sqft is the most damaged area and continues to weaken.
- Ron Butler describes ongoing price declines and builders discounting completed units heavily.
Oakville Builder's Deep Discount Example
- A builder in Oakville listed remaining units at $675/sqft after buyers originally paid about $1,100/sqft five years earlier.
- Ron Butler says that steep discount devastated earlier buyers and may jeopardize their mortgage approvals.