Housing Market Likely To Have An Impact On The Economy

According to an economist of CIBC, Avery Shenfield, the means used to regulate the country’s real estate market could turn out bad for the entire economy. In addition to that, he supported the call for more supply which should be the main focus right now, rather than the diminishing of demand.

In a statement that was written by Avery, he mentioned that the increasing house prices in Vancouver is by no means helping to boost the wider economy as most people are required to save up for a downpayment. In the same vein, he gave a warning about the repercussions that will be faced if the markets cool down.

The Economist  magazine gave a warning that “The lack of affordable housing for the next generation of workforce entrants could act as an impediment to business growth, or encourage businesses to locate elsewhere.” He debated that if the right policies are put in place, then the real estate market will not have to experience a bust or a cycle that is out of order.