Although it’s impossible to predict the future, current trends and statistics create a
picture of the market’s health.
In 2019, the Canadian housing market has reached a turning point. While it may have corrected slightly, experts at RBC Economic Research consider the housing market steady.
Additionally, they also consider that the recent housing market corrections of 2018 will reduce the chance of overheated markets and improve the long-term health and stability of the overall market.
As we begin 2019, home sales may increase modestly, as lenders and buyers adapt to the 2018 mortgage regulations. Overall, according to CREA Quarterly forecast, the national home sales are anticipated to rebound slightly, but will remain low compared to sales numbers over the last few years.
RBC Economic research anticipates gradual appreciation in 2019 and 2020. While CREA’s Quarterly forecast is that the national average sales price is expected to increase 3.8 percent to $518,300 in 2019.
Moody’s analytics expects that “Hot”markets, including Toronto and Vancouver, are expected to experience price corrections that will ultimately align prices with a more stable, long-term price trend.
Millennial buyers will continue to comprise the majority of first-time buyers and are expected to keep the housing market going strong for the next few years, especially in “hot”markets like Toronto and Vancouver.
The next decade is predicted to be steadier than the last as it will not be defined by sharp increases and decreases. According to the Bank of Montreal, the market may slow down slightly due to fewer first-time buyers and potential increases in mortgage rates.
KEEP AN EYE ON INTEREST RATES
Although the Canadian economic outlook is stable, strong wage growth and higher energy prices may cause the Bank of Canada to increase interest rates again in 2019. Experts, at RBC Economic research and CREA, predict the Bank of Canada will increase interest rates three more times in 2019!
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