Hub Podcasts Why Canada's real estate market is in decline
Jan 14, 2026
Ron Butler, a principal broker at Butler Mortgage and insightful real estate commentator, delves into the troubling trends in Canada's housing market. He reveals how forced sales are depressingly recalibrating home values and creating widespread negative equity. Butler critiques policy missteps, including delayed interest rate hikes and unchecked immigration, which he believes are exacerbating the crisis. He also addresses the unique challenges faced by investor-driven condo developments, warning of defaults and an oversupply of micro-units.
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Brampton Flip That Lost 39%
- Ron Butler describes a Brampton house bought at the 2021–22 peak and flipped at a 39% loss after policy changes cut foreign student demand.
- The purchase depended on illegal rooming-house-style rentals and collapsed when federal rules reduced foreign student arrivals.
Distressed Sales Reset Neighborhood Prices
- Distressed or forced sales set new comparables and immediately reset values across surrounding streets and neighborhoods.
- Ron Butler explains that recent low sales rapidly spread lower appraisals through entire regions.
Underwater Mortgages Freeze Transactions
- Large price drops push many homeowners underwater, preventing sales, refinancing, or equity withdrawals.
- Ron Butler notes this creates a broad decline in the residential real estate asset class in Ontario.