The trickle-down effect is a theory in economics that suggests changes in one part of the economy are felt farther down the chain. So, when oil and potash prices are soft, it is more than mining companies or oil producers who feel it.
It is often evident in the retail sector and in places such home ownership. The latter is one truly feeling the pinch these days.
Builders tried matching new construction to population growth and demand from families looking to upgrade. Timing is not always a perfect science and if builders get ahead of the market they end up with excess inventory.
It takes a while for this to work its way through the system so builders often lower prices to lure buyers. In Regina, for example, the cost of building a new home has fallen by 2.6 per cent in the last year with a quarter of that decline coming in November alone. That’s the biggest drop in the country, significantly higher than the half-point reduction in Saskatoon.