RBC Predicting "Historic Correction" - Is that the whole story though?

Be careful only reading the headlines to these news stories. They are designed to scare people and create hysteria.

For example, the attached article looks terrible. However, if you read the article itself and dig a little deeper into the numbers, the headline doesn't tell the whole story.

RBC is predicting this "huge correction" this year with a decline in prices by 14% over last year. That's huge!

But wait, prices were up over 30% last year in some areas and grew at an unsustainable pace. So, if they come down 14% as RBC predicts, they are still up from 2020 prices, in most categories.

Yes, sales volume will be down, and it's a balanced market, but 2021 was a record sales year so it makes sense to come down from record breaking sales volume.

If you bought a house in the last 24 months, there's no need to panic. You aren't losing all of your equity and as long as your plan isn't to flip your purchase in the short term, you are still in a great position and over time your property will appreciate, you will pay down your mortgage and you will build equity.

Don't let the sensationalist media frighten you.

And, if you are in the market to buy your first home, there will be opportunities. But as I say time and time again, time IN the market is better than TIMING the market.

Posthaste: Canada's housing market headed for 'historic correction,' says RBC

Downturn will be worse than any seen in the past 40 years