Gelderman.ca Fraser Valley Real Estate : RE/MAX Presents a 2019 Canadian Housing Market Outlook

Wednesday, December 12, 2018

RE/MAX Presents a 2019 Canadian Housing Market Outlook

RE/MAX Presents a 2019 Canadian Housing Market Outlook

Findings from the RE/MAX 2019 Housing Market Outlook Report:

· Rising interest rates will be a key factor affecting housing affordability in 2019

· 36% of Canadians are considering a home purchase in the next five years, down from 48% at the same time last year

· 65% of Canadians said they do not want to live near a retail cannabis store

Modest price increases are expected in 2019, as the RE/MAX 2019 Housing Market Outlook estimates the average price to increase by 1.7 per cent. Housing markets across the country have stabilized in 2018, after the unprecedented increases in in average price that many markets experienced in 2017. However, there continue to be some outliers in 2018 average sales price gains, particularly in areas outside of the main city centres, such as Chilliwack (+13 per cent), Windsor (+13 per cent), London (+17 per cent) and Charlottetown (+11 per cent). It is anticipated that the market will continue to stabilize, as Canadians will start to feel the pinch of higher interest rates as they move forward with their home-buying plans in 2019. A recent survey revealed almost one-third (31 per cent) of Canadians said higher interest rates have not affected their ability to get an affordable mortgage thus far. However, this is expected to change in 2019. A separate survey of RE/MAX brokers and agents found 83 per cent predict rising interest rates will make it more difficult for Canadians to purchase a home next year.

British Columbia

Reduced foreign buyer activity has opened up more opportunity for local buyers in Greater Vancouver’s condo market. While average residential sale prices for all properties increased by two per cent, from $1,030,829 in 2017 to $1,049,362 in 2018, the number of sales dropped by 30 per cent. The low absorption rate is expected to bring down average residential sale prices in 2019 by three per cent.Similarly, the number of sales year-over-year has dropped by 33 per cent in Kelowna. Rising interest rates, government policy changes and the mortgage stress test were all factors that contributed to the decline, which is expected to continue into 2019. Average residential sale prices increased by six per cent year-over-year from $674,930 in 2017 to $718,915 in 2018, with prices expected to decrease by three per cent in 2019.