“The ongoing softening in housing market activity is hardly a surprise and probably represents the early stage of the highly expected downward adjustment in both volume and prices.”
So begins a CIBC report released today detailing what effect demographics will play on the Canadian real estate market. The good news is that CIBC believes that demographic forces will be as supportive to real estate markets in the coming decade as they were in the past decade.
While the current demographic population projection by Statistics Canada suggests a relatively mild demand for housing in Alberta & Saskatchewan, there are many reasons to believe that net migration to those provinces will be stronger than currently projected — leading to stronger housing market demand.
The report concludes by saying that “any adjustment will not be aggravated by negative demographic forces. In fact, at least for the next decade, demographic forces will be strong enough to mitigate the damage and probably shorten the duration of the upcoming market adjustment.”
To download the entire report, click here