A recession is usually used to describe a period of significant decline in the economy, but that term also applies to a B.C. housing market marked by a sharp decline in home sales, eroding prices and a slowdown in housing starts.
Resale of residential properties dropped 17 per cent from 2017 to 2018, while housing starts slowed down by 10 per cent. Aggregate sales in the province’s urban centres fell 40 per cent from the end of 2017, but even median and small markets were hit by 10 to 20 per cent activity.
There is a room for buyers to negotiate, but on the flip side, the economy is strong enough that there aren’t many sellers who have to bring down their price. Also the Canadian housing markets avoided the fallout from the last housing market crash in the U.S. Now Canada is less reliant on the U.S. for trade. It is likely that a future slow down in the American housing market would be even less of a concern for Canadian housing markets
Because the downturn is driven by policy measures and not by a broader economic slump, economist don’t see a major crash in the housing prices.