What’s in Store for the Market in 2017?
The Canadian housing market is expected to cool off in 2017, but that’s not a bad thing. The market has been hot for the last few years and many feared a crash was imminent. While the market is set to stabilize, a crash is not predicted.
HOME PRICES ARE EXPECTED TO GO UP Home prices are expected to increase 2% in 2017.*
HOME RESALES ARE EXPECTED TO DECREASE SLIGHTLY Home resales are expected to decrease 3.7% in 2017.*
IT’S A SELLER’S MARKET IN MANY AREAS* However, most markets are considered balanced. In the largest markets, demand ‘outstrips’ supply.
NEW MORTGAGE RULES MAY COOL HOME SALES Experts say the new rules enacted by the Canadian government last fall may dampen home sales since they affect the largest segment of the Canadian mortgage market. Under the rules, all high-ratio mortgage borrowers will have to qualify at the 5-year benchmark rate. It’s expected that one in five home sales will be affected by the changes. However, the changes aren’t expected to cause a crash.*
MARKETS ARE PREDICTED TO MODERATE Nationally, affordability is consistent with historic norms. While affordability-related risks may increase in Vancouver and Toronto, both markets are showing signs of cooling. The good news: experts predict the risk of a widespread and steep downturn in the housing market over the next 12 months is low.*