Nothing to add really. I think he says it all. Where to from here?
Will we get a sudden rush of demand? Driven by what? The CMHC has been (belatedly) hog-tied, rates are low (and the 5 year Canadian bond rates have been drifting up), the Government has come to it's sense and is not as speculator-friendly as it was- so we could have more weakness and a stand-off between buyers who are not as panicked and sellers who remember the good-old-days.
As to the discussion below on HPI v Median v Average v Benchmark, it is all academic. The market sets the price. I saw a home on the sunshine coast sell for 20% under list, at the same price it was bought for 5 years ago, after being renovated . How will that show up in the HPI??