In Canada Home prices are expected to increase by almost 5 per cent next year. The reason for hire in price is buyers demand in the Greater Toronto Area (GTA) to overcome the impact of tougher mortgage qualification rules. The news has been revealed by Royal LePage forecast for Canada’s housing market.
Royal LePage has started the season for housing forecasts in 2018 with an optimistic outlook, forecasting fairly modest impacts from new rules that will come into effect after Jan. 1. According the new rule, the buyers will be required to meet a higher stress-test hurdle in-order to qualify for mortgages.
Chief Executive Officer, Royal LePage Phil Soper expects slower markets in the 2018 first half as buyers will take time to adjust according to the new rules, but he said demand forces and natural supply will eventually triumph over “regulatory tinkering.”
Mr. Soper said in an interview, growing housing demand among people who are over the age of 25 today, plus increase immigration and intra-provincial migration to Vancouver and Toronto all these factors are creating a strong demand for housing in both of Canada’s priciest cities.