Quote:
Originally Posted by nik-
The economy as a whole is based in large part on housing. It happened here last time and we took a dip, why would it be different if it happened again.
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The 2007 reccession in Canada was to a large degree caused by banks not having money to lend and fund projects. A lack of available capital prevented major projects from going ahead. So while it was tied to housing I would argue it was the banking issues that were the problem.
Looking at the chart above our affordability is the same as in 1985. So was 1985 right before the late 80's housing crash or in the middle of the early 80's boom?