Supply-side constraints first fueled frenzy, then slowdown

by | Oct 18, 2021 | Blog

It’s simple economics – an increase in demand for any commodity results in higher prices. Competing buyers outbid others, sometimes dealing a severe blow to low-income families. But in a competitive market, a rise in demand is often followed by new suppliers entering the market, compelling prices to cool off. Canada’s housing market – more than anything else – is being shaped by this basic rule of economics. In a world struck hard by the pandemic, housing sector activity is defying all economic trends on the annual parameters.

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