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Heading for the Exit

October 5, 2023

As part of our Veritas 11th Annual Great Canadian Real Estate Conference, our Senior Financial Services Analyst Nigel D'Souza reviewed the results of our annual survey of real estate investors among our clients and followers.

A few highlights from this year's survey:

•  There was a significant increase in investors who do not plan to purchase a property in the next 12 months;
•  There also was a significant increase in investors who plan to sell (no sign of panic selling);
•  More real estate investors are cash flow negative.

"The real concern I have is we could enter a negative feedback loop," Nigel said during his presentation. That happens when real estate investors who are under financial stress are forced to sell into a market with rising housing inventories, which drives prices lower. "As equity continues to get eroded, you have more marginal sellers hit the market, and that might lead to equity getting eroded further through price declines, and that's how you get a negative feedback loop and that's how you get a potential real estate market correction or crash."

Download the slides from the survey.