"New housing supply outstripping demand"

Greater Vancouver is such a great place to live and with the prices that were rising for houses, people were competing to get a space in this great city. Though now, as the cost of living in Greater Vancouver has risen, more and more families have moved out to the suburbs where the cost of a house is much less. Thus, for the article says, there is new housing to satisfy the demand for Greater Vancouver houses but the market has slowed down making the demand not as high. Now there are many vacant new houses, which also makes the re-selling and selling of homes uncertain.

As housing is an elastic or a luxury good, the price of it varies and subjects to the supply and demand of the houses. If the supply is low and the demand is high, the price will definately go up. However in this case, the supply is high and the demand is starting to go down but not drastically dropping, which makes the market uncertain.


http://www.canada.com/vancouversun/news/story.html?id=a749a8c3-b564-41b3-8ec3-ee4b787fb3e0&k=94899&p=2