Found 96 blog entries tagged as homeowners.

  • Canadian real estate construction trends

A recent RE/MAX Canada report has highlighted shifting consumer trends in Canadian real estate, driven primarily by challenging market conditions and Covid-19. The 2021 Renovation Investment Report found more than half of Canadians renovated their home for personal enjoyment, not the perceived return on investment (ROI) that was the driver behind many renovation decisions in the past. Tightening market conditions from coast to coast and the “lockdown effect” of Covid-19 were factors in the shift.

Renovation Trends in Canadian Real Estate

  • Three in 10 Canadians (29 per cent) renovated for non-essential “lifestyle” reasons, such as recreation/entertainment projects.
  • More than half of Canadians renovated their…

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JANUARY 11, 2022

Canada’s central bank quietly updated its real estate affordability index. It wasn’t good news. The Housing Affordability Index (HAI) made a big jump in Q3 2021. Maintained by the Bank of Canada (BOC), the HAI shows the share of income required to service a mortgage on a home. Low rates are no longer helping affordability, but fueling prices that outpace wages. As a result, affordability has now reached the worst level since the Great Recession.

The Bank Of Canada Housing Affordability Index

The BoC Housing Affordability Index shows the share of income needed for housing costs. More specifically, the share of disposable income an average family would use. Housing costs are defined as mortgage payments and utilities.…

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Canadian housing market trends 2022

The Canadian housing market has been a fixture in media headlines and an ever-present topic of conversation around dinner tables and water coolers by those who continue to work in an office setting in the wake of COVID-19. Early on in the pandemic, some expected a steep decline in home sales and prices in Canada, but nobody could have predicted what actually materialized in the market. Come May 2020, regional real estate markets began their rebound. The spike in demand continued through 2021, resulting in record-breaking price growth and what many would consider to be the hottest year in Canadian real estate. So, what can we expect in 2022? Here are five trends to keep your eye on.

Interest rates are expected to rise.

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  • Canadian real estate rental apartment

One of the chief 2021 themes of the Canadian real estate market has been investors representing a significant portion of demand, from the major urban centres to small towns from coast to coast. Be it an investment titan or individual players possessing multiple properties, the Canadian housing market has been a breeding ground for investors trying to capitalize on the sizzling real estate market.

This past summer, it was reported that investors accounted for one-fifth of home purchases in Canada. As another example, this past fall, Teranet released its quarterly Market Insight Report, revealing that investors represented about one-quarter of all Ontario residential property transactions, and one-third in Toronto.

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Canada’s oldest bank has a warning for homebuyers — prices don’t always rise. The uncharacteristic message came from BMO‘s chief economist Douglas Porter. Canada has seen few home price corrections, causing homebuyers to think of it as “risk-free.” Not just in Toronto or Vancouver, but virtually every market in the country, all simultaneously. BMO wants you to know that’s not always the case, and risks rise the longer home prices avoid a correction. 

Canadian Real Estate Prices Climbed Despite A Decade Of Warnings

Canadian real estate has faced “bubble” warnings for nearly a decade that have not come true. Some dudes named Poloz and Macklem were even ranting about it back in 2013 but have since come around. Justified or not, listening…

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Canadians might see much higher borrowing rates in the not-so-distant future. Scotiabank chief economist Jean-François Perrault has forecast up to 8 rate hikes within 2 years. He sees elevated inflation backing the Bank of Canada (BoC) into a corner on the issue. Inflation appears to be a lot less transitory than thought. If that’s the case, the central bank will be forced to move, and address the highest inflation rate in decades.

Canadian Interest Rates Forecast To Rise 200 Basis Points

The bank’s economists are calling a very sharp climb for Canadian interest rates. They have forecast an increase of 100 basis points (bps) in the second half of 2022. It would be followed by another increase of 100 bps in 2023. An overnight rate of 2.25% would…

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