The housing market was stagnant due to following reasons:
1. Mortgage rates were too high, typically between 10%-15%. Not many people could afford.
2. Econormic instability. People were still recovering from the recenssion occurred in early 80's and were very cautious on capital spending and long term financial commitment.
Check on Statistics Canada publications on housing, building permits issued at that period, history of lending rates. You may also consult with Canadian Mortgage & Housing Corporation for professional answers.
1. Mortgage rates were too high, typically between 10%-15%. Not many people could afford.
2. Econormic instability. People were still recovering from the recenssion occurred in early 80's and were very cautious on capital spending and long term financial commitment.
Check on Statistics Canada publications on housing, building permits issued at that period, history of lending rates. You may also consult with Canadian Mortgage & Housing Corporation for professional answers.