Severe Housing Downturn in Canada is Unlikely

 

Royal Bank has stated that a widespread real estate downturn is unlikely and that the probability is “still low but has increased somewhat in recent months”. Mortgage stress tests and rising rates are making it harder for buyers to get a foot in the door.

Toronto, Vancouver & Alberta are currently at risk due to the high interest rates put on the high-priced areas, and affordability is a major at a crisis level. “Regulatory changes made the market healthier – it is now balanced, well supported by economic and demographic fundamentals, and while condo building activity is elevated we see few signs of overbuilding,” says RBC.

Montreal remains one of Canada’s stronger markets at the present time, says RBC. Elevated levels of apartment construction in Montreal, Vancouver, and Toronto is a potential long-term concern, however unsold inventories are low.

 

For more on this article, visit: https://ca.sports.yahoo.com/news/severe-housing-downturn-canada-unlikely-rbc-190257940.html

 

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Forecast Predicts Slow Housing Market In New Year – While Prices Increase

Image result for housing market going up

A recent¬†CTV News article states that the forecast for Toronto’s housing market is expected to slow down in 2018 due to new stricter mortgage rules, however prices are still forecast to rise about five percent.

For homebuyers who do not need mortgage insurance, a new stress test will be required starting next year. For buyers who have a down payment of 20 per cent or more, these new rules intend on reducing the maximum amount that they are able to borrow starting January 1st.

It is said that a few potential buyers who are looking to upgrade may hold off on listing their homes due to the fact that they will not be able to have access to sufficient financing on their new homes. However, with the diminishing affordability of real estate, this may demand for entry-level listings to surge.

In Canada’s largest cities, the housing supply limited and so it is beginning to widely increase in price. The increase is will be higher than normal leves once the market adjusts to the new stress test.

The predictions are that more prices in the GTA are expected to increase by 6.8 per cent in the new year, while the Greater Montreal Area is expected to inscrease by only 5.5 per cent, and Greater Vancouver is expected to increase by 5.2 per cent.

To read more, click the link below:

https://www.ctvnews.ca/business/housing-market-expected-to-slow-next-year-but-prices-still-forecast-to-rise-1.3719691