Understandably the bears are growling.
They were on the cusp of a major drop in house prices, a veritable waterfall in the numbers and then <<<<<<< happened. style="FONT-SIZE: 130%">
Rates were cut and banks were bailed out world-wide, including in Canada.
Forcing consumption, penalizing savers became the 'play book' that governments followed. Never mind that the poor earth is groaning under our current orgy of consumption. We have built such a worldwide ponzi scheme that any let up will cause the over-leveraged house of cards to collapse.
Welcome to Capitalism in the 21st Century.
So 'cash-for-clunkers', zero interest rates on deposits, 'home improvement' tax-credits and other imaginative schemes were implemented. There aren't many more bunnies to be pulled out of the hat though.
So if/when RE resumes it's drop (unless we are in an inflationary spiral), there wont be much else that can be done. I doubt we will have tax-deductible mortgages in Canada, as they do in the US, the costs of this would be fiscally prohibitive.
Meanwhile Vancouver's housing bounced on a trampoline.
A quick drop, blink and you missed it, and up we went again.
Here is the graph again in case we forget how far we went up and then down:
Based on Kelpto's numbers below, September should be pretty flat. Now we will have to wait and see what October's has in store for us.