"Possible near-term turbulence but Canadian market to remain on track The most likely scenario, in our view, is a mostly flat trend in housing demand in Canada overall in the next two years (and potentially beyond). The risk of a significant, sustained and widespread drop will be limited given our expectation of a positive economic context that will sustain growth in household income and of a gradual pace of interest rate policy normalization – the Vancouver market could be an exception"
The lack of affordability of housing would have far reaching affects in BC where more than 70% of disposable income consumed in mortgage liability. The creative , young class is fleeing the province as they could not afford house with their meagre salaries, which also lead to migration of businesses to other provinces. The US style crash is not viable because of strong immigration along with investors from China racking up properties and pay astonishingly high price.
Strong Canadian $ also has disastrous affect on Canadian businesses. Everyone is driving down south and save 20-40% and use the leverage of strong Canadian $ . However , according to Robert Shiller Canada is lucky while facing economic turmoil , high prices of oil and commodities saved Canada . Was this saving or destroying ? The time will tell