Leftbank condos floor plan. Canadian real estate market forecast. With house prices in many cities astronomical, a growing number of would-be Canadian home buyers are hoping for a market crash.Please Visit: Leftbank condos floor plan to Get Your VVIP Registration Today!
In Vancouver, the housing market with the worst affordability in North America, a recent survey showed that nearly 2% of residents, including many homeowners, want prices to fall.
With the arrival of 2019, the housing market in Toronto and Vancouver has cooled, a wish that many believe will come true this year.
Experts are not sure. To be sure, the pace of the global economy is slowing, and the Canadian real estate market has been subjected to mortgage “stress tests” from rising mortgage rates and federal regulations. However, they say many factors, including robust immigration growth and a strong job market, are supporting Canada’s housing market.
But experts generally believe that there will be no rapid growth in house prices in almost all Canadian housing markets, and that home sales and prices will grow more slowly in the coming years.
A year and a half ago, the Bank of Canada raised interest rates, putting pressure on borrowers. According to the banks’ own calculations, it will take about a year and a half from the rise in interest rates to a response from the housing market. As a result, higher borrowing costs will have a greater adverse impact on the housing market.
The number of bankrupt families in Canada will peak at the beginning of 2019, according to a recent forecast by the national registered trustees industry group. However, recent data from the Canadian Bankers Association show that the increase in the number of bankruptcies has begun earlier than expected.
Housing affordability in Toronto and Vancouver is at an all-time low, while nationwide affordability is the lowest in 30 years, according to the Royal Bank of Canada (RBC).
According to a survey conducted by market research firm Abacus Data2018 at the beginning of this year, housing affordability has become the top issue for post-80s generation, and these people will be the largest voting group in this year’s federal election.
Sixty-four percent want the federal government to help reduce house prices, 48 percent want the federal government to tackle climate change, and 33 percent want the federal government to focus on infrastructure.
Rob McLister, co-founder of ratespy.com, thinks politicians will “try to win the support of first-time home buyers” by lowering the threshold for mortgage loans.
He believes there will be “at least one policy change” in 2019: capping interest rates on mortgage “stress tests”; restoring the 30-year mortgage maturity for first-time home buyers; and changing borrowing banks from stress tests.
In terms of housing affordability, “people looking for breakthroughs in 2019 may be disappointed,” RBC said in its affordability index report released in December. We expect the Bank of Canada to raise overnight interest rates twice this year, which in turn will continue to increase the cost of home ownership. ”
However, economists at RBC do not think affordability will become very poor, thanks to a slowdown in price growth (or price decline) in some real estate markets.
Lack of affordability may become the norm in large urban centres in Canada-Canadian Institute of Chartered Professional Accountants (CPA).
There is another reason why affordability doesn’t get so bad: it can’t happen. At current price levels and mortgage rates, housing affordability has been at its lowest level since the early 1990s, when the market bubble and rising interest rates peaked the cost of home ownership.
The chart provided by RBC shows that the Canadian housing market has once again reached the lowest point of affordability. Home buyers have reached the maximum amount of money they can afford and are showing signs of fatigue.