Housing Market: House Prices

Housing Market Dept: Video: Why Canada s housing market faces an identity crisis, according to Globe and Mail. The perils of relying on demographics to predict house prices were illustrated early on. In 1989, the much-discussed paper, The Baby Boom, The Baby Bust and The Housing Market by N.G. Mankiw and D.N. Weil, analyzed demographic factors and predicted U.S. real house prices would fall by 3 per cent annually between 1987 and 2007. Instead, they rose by about 4 per cent a year and video: Market View: Home prices dip again: Is this the soft landing? Photos.com Real estate A great deal of scholarly research has established the significance of the other factors. Housing demand is also influenced by immigration, income growth, inflation, regulatory changes, government policies and other variables, as highlighted in papers such as Demographic Changes and Real Housing Prices in Canada by Mario Fortin and Andre Leclerc. The impact of baby boomers can be further offset by supply changes: whenever housing demand softens, for example, homebuilders usually pull back on the construction of houses and this reduction in supply helps stem price declines. (www.immigrantscanada.com). As reported in the news.