Economics

Cooler Housing Market Won’t Hurt Canada’s Recovery, CIBC Says

  • Slowdown in home price growth shouldn’t affect jobs in sector
  • Business investment to pick up as vaccine-led recovery goes on
Photographer: Galit Rodan/Bloomberg
Lock
This article is for subscribers only.

Canada’s hot housing market is showing early signs of a slowdown that may soften the industry’s contribution to the economy -- but not enough to be a major concern, according to one bank economist.

“Now that Canadians are leaving their homes more often, demand for housing is cooling off after a period of historic strength,” Canadian Imperial Bank of Commerce economist Royce Mendes said Friday in a report. “As a result, we do expect this component of GDP to come back down to earth.”