Here are historical real estate prices for the South Okanagan dating back to 1980. It gives perspective to how out of control things got leading up to the 2008 financial crash; followed by 10 years of incredibly low interest rates where late 2019/early 2020 would have seen an even worse financial crisis had the pandemic scenario not come around. Then, further spending to get out of that fresh crisis. It’s been a wild time for real estate and it isn’t over yet!
Also included in the graph is the M2 money supply of Canada, which is the broadest measurement of money circulating in Canada & a good indicator of inflation. I believe, this tends to correlate well with backstopping real estate prices, as can be seen in the graph. We have advanced significantly over these years of big spending and the correlation to house prices is pretty incredible. It does appear however, that we may be getting a bit ahead of ourselves, if history is any guide. Time will tell.
I hope you find this informative!
