According to a lot of analysis when the Canadian housing boom was at a peak, people were so anxious to get into the market that any fall in prices couldn’t last long.
I remember Carol Off at CBC Radio’s As It Happens grilling me about that in an interview almost exactly four years ago, after I’d written a somewhat gloomy column on the future of Canadian real estate.
My contention was that just as oil prices had declined in 2014 contrary to most industry expectations, we should realize that the housing boom could also come to screeching halt, even while experts with interests in the real estate business continued to be reassuring.
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Off’s questioning echoed a widespread view in the market at the time. Buyers, young people especially, were eager to get into the market, but high prices prevented them.
The implication was that with not enough homes to go around, every time prices fell, house-hungry buyers would step in, preventing a further slide in value.