Even though the housing market continues to do well across the nation, experts predict a frost is on its way. Price hikes and slower starts are expected for 2018 and 2019, according to the Canada Mortgage and Housing Corporation (CMHC). The current real estate market in Toronto has already experienced a cool down, while Vancouver’s homes are still overvalued with continued acceleration in prices.
CMHC said home loan costs are on the rise and that should slow the market down. The federal housing agency also said it believes construction in the residential sector to even off by the end of 2019. CMHC has already unveiled mortgage rules that are much tougher to safeguard both borrowers and lenders. These new rules will come into effect at the start of 2018 and experts say the housing market will slow down because of them.
With the market running at full speed, new measures were introduced over the past 18 months with the intent to slow down the market. Some of those measures included slapping taxes on foreign buyers in both Vancouver and Toronto and making it more difficult for buyers to get more in the way of mortgages. In terms of residential real estate numbers, average prices already dropped from $536,000 to $417,283. Prices are expected to rally again a bit in 2018 and 2019.
Getting the help of a lawyer when buying or selling real estate in a volatile market is a wise decision. A lawyer will make sure his or her client’s interests are safeguarded in all transactions. A lawyer in Canada who has experience in real estate law would be able to look over any offers prior to his or her client signing them to ensure the offer has all proper conditions included.
Source: msn.com, “Canada housing overvalued, but cooling seen ahead: agency”, Oct. 26, 2017