07:32 AM EDT, 10/08/2025 (MT Newswires) -- While many are searching for bubbles in the equity market, one continues to undo itself -- Canadian real

estate, said Bank of Montreal (BMO).

Home prices in Canada, and Ontario more specifically, are

still slumping after peaking in early 2022, noted the bank. Interestingly, the current decline is tracking both the 1990s episode in Ontario -- this one has been somewhat steeper -- and national United States price trends after 2007.

It's a widely-held consensus that those two episodes were 'bubbles,' stated BMO.

The bank reiterated that this cycle will be measured in years, not months or quarters, because so many positive factors crested at the same moment: Peak Millennial demand; peak immigration; pandemic-era movement; excess liquidity; ultra-low interest rates; maxed-out valuations; and speculative market psychology.

It's next to impossible to repeat those conditions, and as such, the bear market in housing staggers on until affordability and investment dynamics reset themselves, according BMO.