Time to Short the Canadian Housing Market


The bust is here. See Home Capital Group faltering, record consumer debt to income levels, taxes on foreign buyers, talk of raising interest rates, NAFTA renegotiation, and depressed oil. Also, everyone I know in the industry has told me the market has turned south rapidly this month for the first time they can recall. Houses in the GTA are selling below asking and listings are up. Analyzing my area I found prices have dropped nearly 10% since April. This has not been reflected in the reported stats yet but will and then the selling will intensify and the herding out will begin. The thing is, nearly everyone agrees the market is substantially over valued they have just been going with the trend. Now that the trend has reversed the fall will be fast and hard.

Any thoughts on how to cost effectively Short it with good leverage are appreciated.

submitted by /u/Abstract709
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May 20, 2017 at 11:18AM


from /u/Abstract709


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