CIBC expert warns that housing market curbs could hit economy

Measures to cool Canada’s two hottest housing markets could have a negative impact on the wider economy according to CIBC economist Avery Shenfeld.

He has added his voice to those demanding that the issue of supply should be the main focus of officials rather than the dampening of demand.

While he cautioned of the effects of cooling markets, Shenfeld wrote in a client report that rising house prices in Vancouver do not boost the wider economy as many are forced to tighten their belts to save for a downpayment.
“The lack of affordable housing for the next generation of workforce entrants could act as an impediment to business growth, or encourage businesses to locate elsewhere,” Shenfeld warns.

He also argued that housing markets do not have to see a boom and bust cycle, if the right policies are in place.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Investment Hot Spots:
Albert, Sherkston, Timiskaming, Unorganized, West Part, Doyles, Annan

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address


Is a T.O foreign sales tax a good idea?