Falling interest rates can impact the real estate market. Still, they are not a guaranteed solution to preventing a collapse or addressing all the factors that contribute to the health of a real estate market. While lower interest rates can stimulate demand for borrowing and potentially support property values, several other factors play a significant role in determining the stability of a real estate market, especially in a country like Canada:

1. **Supply and Demand Dynamics:** Oversupply of properties relative to demand can lead to price declines, regardless of interest rates. Similarly, a strong demand for housing driven by population growth, immigration, and economic conditions can help support property prices.

2. **Economic Fundamentals:** The economy’s overall health, including employment rates, income levels, and consumer confidence, plays a crucial role in determining the demand for housing. Economic downturns can impact affordability and lead to reduced demand.

3. **Lending Standards:** The availability and terms of mortgage lending can affect the ability of potential buyers to enter the market. Even with low interest rates, if lending standards are too loose and borrowers take on excessive debt, it could lead to financial instability.

4. **Regulatory Measures:** Government policies and regulations, such as restrictions on foreign buyers, property taxes, and housing affordability measures, can influence the real estate market’s dynamics.

5. **Investor Sentiment:** Speculative behaviour and investor sentiment can drive real estate prices. If investors expect prices to keep rising, they might contribute to demand, which can lead to bubbles if detached from underlying fundamentals.

6. **Global and Local Economic Factors:** International economic events and local factors, such as changes in industry composition or shifts in regional economic activity, can impact a real estate market.

7. **Consumer Behavior:** Changing preferences and demographics, such as the trend toward urbanization, can affect demand for different housing types.

In the case of Canada, while falling interest rates could mitigate some downward pressure on property prices, other factors mentioned above also need to be carefully managed to prevent a real estate collapse. A holistic approach that considers a combination of factors, including economic conditions, lending practices, government policies, and market sentiment, is necessary to maintain a stable and sustainable real estate market. It’s important to note that real estate markets are complex and can be influenced by many variables beyond interest rates.