2017 was a year of growth. In 2018, things slowed down. So, what does the 2019 Canadian housing market have in store?
We don’t need to tell you how difficult it is to predict the ups and downs of the Canadian housing market, but as the year comes to an end, it’s hard not to wonder what’s in store for the new year.
Fortunately, there are plenty of industry experts who are willing to make those predictions. And so far, the forecast looks good.
According to the Canadian Real Estate Association (CREA) house prices are predicted to rise slightly with inflation (2.7 per cent). And, in Ontario, that rise is expected to be closer to 3.3 per cent.
Interest rates also look like they’ll continue to rise in 2019. The big banks project an increase between 2.25 and 2.75 next year. High interest rates and strict housing policies have been credited for improving the quality of issued mortgages, but the Bank of Canada says the housing market is still vulnerable to risk.
Still, the CMHC predicts 2019 and 2020 will be years of moderation. And in Toronto, John Pasalis, president of Realosophy Realty tells Global News he doesn’t see much fluctuation in prices at all next year.
The reason, he says, is because unlike American cities that have seen a crash, Toronto isn’t nearly as overbuilt. Pasalis also notes the high cost of renting in the city could keep prices rising albeit slowly.
Another positive sign for a strong market in 2019 is an increased rate of immigration into Canada. Statistics Canada estimates there will be as many as 330,000 newcomers to Canada in 2019 and of course, they’ll need somewhere to live. Since many will settle in metropolitan cities, it’s safe to assume affordability will continue to be a hot topic in 2019.