economic malaise doesn't equate to lower house prices. Sales will drop off a cliff, but I doubt our population will decline. Foreign immigration to Canada is at an all time high and less people are moving directly to Toronto. Calgary is one of the main markets of this immigration. This will continue to fuel the housing crunch.
I don't see lower house prices at least to a significant level. However I do see a stalled market. So I wouldn't advise anyone to buy now looking for an investment or quick flip. But if you're looking for a place to call home, I don't see how you could go wrong. Rents are still high so you're not saving money renting, and prices are showing no signs of coming down. The same house that sold last year is listed this year for at least what it sold for last year if not more. Most people that are having trouble selling now are delisting. So there is little downward pressure on prices.
Just because someone is laid off doesn't mean they have to sell their homes. Layoffs happen all the time even in good economic conditions. There is a big difference between someone that's laid off and someone that HAS to sell or foreclose.
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