The Canadian Real Estate Market Projections to 2019
A Balanced Housing Market
The Canadian Real Estate Market is poised to remain strong. Despite a cooling off in home prices and sales, all data and stats suggest minor fluctuations with housing starts set to level off by 2019.
We are in a balanced market in which there are both inventory and buyers.
But, why has the market “cooled off”?
- Decreased affordability in many markets, making it difficult for first-time buyers.
- New mortgage qualifications on all buyers ensuring homeownership costs do not exceed 39% of the borrowers’ total income.
- New regulations like taxes on foreign homebuyers put in place to regulate volatile markets.
A balanced Canadian housing market means it’s strong and not considered a Buyer’s or Seller’s market. With interest rates holding steady and a good inventory of both houses and potential buyers, any slight changes are just that and should level out in the months to come.
Sources: CMHC, Royal Bank of Canada, CREA