Several experts have released their predictions for the housing market in Canada next year. The year 2017 saw steady growth of the real estate market in Canada as per reports while 2018 has been a mixed bag with an initial downturn giving way to a steadier market witnessing marginal growth. What does 2019 have in store for the housing market then? There are several experts who have predicted that the real estate market will be even more balanced in 2019 and will avoid any crash while also being far from boom-like conditions.
CREA (Canadian Real Estate Association) has already predicted a slight increase in home prices throughout Canada next year with inflation. This will be roughly 2.7% as per reports while in Ontario, prices are expected to go up by around 3.3%. Additionally, interest rates are also expected to keep rising steadily next year and banks are projecting increases between 2.25-2.75% in 2019. Stringent housing regulations and higher rates of interest have kept the market successfully in check while enhancing overall mortgage quality.
There is a prediction that the years 2019 and 2020 will have moderate growth witnessed as far as the Canada real estate market is concerned. Some experts do not foresee any price fluctuations for 2019 while some say that higher renting costs in cities may keep prices increasing at slower levels. Another positive development for Canada’s housing sector will be the enhanced immigration rate in 2019 as forecasted by several studies and reports. These reports have highlighted that there are expectations of at least 330, 000 new citizens for 2019 and this will automatically spark demand both across metro cities and the suburbs alike. Additionally, several big condo projects are being built in Toronto and several locations and the increase in overall supply levels will also boost the market as per forecasts.