If you’re on the fence about buying or selling this year, these four factors that are sure to affect the housing market in 2018 may have an impact on your decision.
New Mortgage Rules
It’s hard to tell just yet how the stress test has affected the industry. However, in Ontario’s 6 largest housing markets over the past 10 years, one thing is for certain. Despite changing economies, varying interest rates and mortgage rule changes, the last 10 years have been favourable in Canadian real estate.
Rising interests mean that the economy is performing well. In other words, people are making more money and therefore more likely to buy a home.
Immigration and Population
According to 2016 census data, Canada’s population is around 35 million people. Two-thirds of the growth between 2001 and 2016 attributed to immigration. This is positive for housing activity and prices – especially for the real estate investor!
Supply and Demand
When it comes to move-up buyers, it’s a chain reaction with supply staying on par, if not declining slightly in 2017. New mortgage rules and rising interest rates have reduced first-time buyers’ purchasing power. When first-timers can’t afford to buy the starter homes, this then impacts move-up buyers who depend on the proceeds of their starter sale in order to buy up.
If buying or selling a home is on your to-do list in 2018 or you’re just not sure – I can help!