Are we at risk for another global financial crisis?

“You’d probably have to see a real weakness emerging in the labor markets, to see arrears a lot higher, maybe a real pick up in construction activity, for a more significant decline in housing values to occur,” he said. “I think a more realistic scenario is probably one of a more moderate, sustainable rate of growth as housing supply remains low. And then gradually, we will see a supply response once we get through this bulge of infrastructure projects. And supply is, hopefully, supported by stronger labor markets in the construction space. There is absolutely going to be a supply response. It’s just still, still a long way away, unfortunately.”