The forecast looks good. The real estate market in Canada was a real roller coaster ride in 2017. There were twists and turns; it was ascending and descending. But prognosticators are hopefully optimistic as to what awaits the housing market in 2018.
Some are predicting the full-steam-ahead days have rallied just about as much as they are going to and that a slow-down is impending. But that is not necessarily a negative. In fact, the market has shown and continues to show a great deal of elasticity or bounce back. Toronto is a prime example of that.
The province slapped a 15 per cent tax on those buying new homes, not to mention they made changes to mortgage rules. The weather did not co-operate for spring building, and a much-used non-traditional lender went into crisis mode, but the market did not collapse. It sputtered for a bit, but continued to rally.
Pundits are thwarting talk of any impending market crashes in 2018. However, with the new year comes a stress test which may slow things down a bit. Borrowers will have to qualify for higher mortgage rates, which may slightly narrow the purchasing window. Time will tell.
One thing is for sure, there will always be real estate transactions taking place in any market. And with those transactions, the guidance of a lawyer in Canada is invaluable. A lawyer will make sure his or her client’s best interests are at the forefront of any real estate deals before during and after any contractual agreements.
Source: financialpost.com, “2017 proves Canada???s housing market is a lot more resilient than everybody thought“, Murtaza Haider and Stephen Moranis, Dec. 29, 2017