It’s a new year, and with it come some new headlines on real estate, mortgages and the economy in Canada. We’ve summarized some of the most discussed topics of the month to help ease you in to the conversation.
The condo market helped fuel the strongest year since 2007 for Canadian home builders.
2017 was a blockbuster year for developers as housing demand peaked across Canada. The year saw work commence on 219,675 units – up from 197,916 units in 2016 – according to data from Canada Mortgage and Housing corp. Starts of multi-unit projects like Condos hit record figures originally set back in 1955.
Read more – The Globe and Mail
Everyone’s mortgage is about to get more expensive.
The Bank of Canada followed the lead of Canada’s Big Six banks and raised its benchmark interest rates to 1.25 per cent on 17 January. The decision came after Canada’s largest banks, minus CIBC, moved to raise five-year fixed rates by 15 points to 5.14 per cent. The Bank of Canada expects that roughly 47 per cent of residential mortgages will be up for renewal this year. Experts warn that more rate hikes could possibly follow in the near future.
Read more – Maclean’s
The housing market could hit a slow patch due to the interest rate hike and tighter mortgage rules.
Economists predict that Canada’s real estate market will hit a slow patch while higher interest rates and 2018’s new stress test cause potential buyers to delay their home purchases. “This is the most significant test the market has seen in recent years,” says Benjamin Tal of CIBC, who expects a slowdown to be seen as early as the first quarter of 2018.
Read more – The Financial Post
And in BC, Premier John Horgan says he won’t ban foreign buyers.
BC Premier John Horgan plans to cool speculation in the province’s real estate market, but not with a ban on foreign buyers. Instead the province’s February Budget will be used to “dampen speculation and increase housing supply,” explained Horgan.
Read more – Huffington Post
As 2018 rolls on, we will continue to share our highlights from the newsroom. Until then, we invite you to leave your comments and start a conversation below.