The decline in new supply may reflect purchase offers below asking price that are made to sellers who are under no pressure to sell. Instead they choose to take their homes off the market once their listing expires. — Gregory Klump, CREA Chief Economist
In the absence of economic stresses like a spike in interest rates or a sharp drop in employment, this dynamic can be expected to keep the housing market in balance.
What do you think? Those are big ifs. Canada is not an economic island. Consider that no nation is an economic island and that the trend is to more and more economic interconnectedness/dependency: The Global Economy’s New Path.
Canada is leaning heavily upon its oil sands. If Climate Change or Anthropogenic Global Warming (AGW) is happening and is due to rising CO2 emissions, then it knows no boundaries set on any map of the Earth. Again, if it is happening and is due to carbon burning and if the planet is to control AGW, then Canada and other carbon-exporting nations, along with user nations, will have to 1) invent and implement ways sufficiently and cost-effectively to capture (sequester) greenhouse gases in the atmosphere or take other hugely effective mitigation measures or 2) employ non-carbon-fuel, all but, if not entirely, replacing carbon.
It’s a longer-term issue than the immediate housing or real-estate market in Canada, but longer-term investors will take note.
It’s a risk-management issue on a global scale. Insurance carriers have been well aware of it for many years. Whether you believe AGW is happening or not, we recommend you become, and remain, aware of how insurance carriers are pricing their products due to what they believe is AGW.