flagged<\/a> high household indebtedness as a key vulnerability to Canada\u2019s housing market in the year ahead. Similarly, RBC Senior Economist Robert Hogue said last September that household debt remains one of the top vulnerabilities to the country\u2019s economy.<\/p>\nThe unprecedented economic impacts of the pandemic are already expressed on a scale that was likely unimaginable to market experts only a few months ago, so it\u2019s not surprising that Siddall is gravely concerned about Canadian homeowners\u2019 resiliency in the face of these challenges.<\/p>\n
The aim, of course, is that the country\u2019s massive effort to contain the virus, support and re-open businesses, and restart the economy moves ahead on the hoped-for timeline. This may lead the country down a path that avoids the worst-case scenario Siddall was likely envisioning.<\/p>\n
While a consensus has emerged among market experts that April was rock bottom for home sales activity across the country, there\u2019s still plenty of uncertainty around the speed with which the market can claw its way back from that low point and how much damage to home prices will be done along the way.<\/p>\n
\u201cThe real question is how the market will evolve when lockdowns are lifted and activity can re-start with some semblance of normalcy. That is, it’s going to be a race between sales and listings out of the gate to determine how the market balance shapes up, and where prices move in the near term,\u201d wrote BMO Senior Economist Robert Kavcic in a May 15th note.<\/p>\n
\u201cPresumably, massive federal income support and mortgage deferral programs will help keep homeowners in their homes, limiting forced selling, assuming the economy and jobs come back on the timeline expected,\u201d he added.<\/p>\n
![\"Peel](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2020\/03\/Peel-Region-new-condo-sales.jpg\")
<\/a>Photo: James Bombales<\/em><\/p>\n