This week: Non-Resident ownership of condos remains low and stable in Canada, High consumer confidence regarding homeownership and the economy, and more…
Non-Resident ownership of condos remains low and stable in Canada
The CMHC looked at 17 Canadian Census Metropolitan Areas (CMAs) to determine shares of condo apartments owned by non-residents. They found that the majority reported shares of less than 1%, which indicates low and stable non-resident ownership. In Montreal specifically, an increase was noted by the Canada Mortgage Housing Corporation.
High consumer confidence regarding homeownership and the economy
Source: Buzz Buzz Home
The most recent Bloomberg-Nanos consumer confidence index, a poll designed to calculate Canadian consumer confidence, came in at 62.17%, indicating that Canadian consumers are excited about homeownership, the economy and real estate. This is the highest the index has been since the recession. More than 43% of respondents said they expect housing prices to rise in the new year, up from the 10-year average of 37 per cent.
New mortgage rules could be a boon for investors
Source: Canadian Real Estate Magazine
According to Canadian Real Estate Magazine, the new mortgage stress test, when combined with escalating housing prices, could mean good news for investors since it slows down homeownership (and keeps people in rented accommodations). A+ tenants – ones with good credit and stable income, may take longer to qualify for a mortgage, becoming long term renters and occupying corporate rentals.
Stress tests, foreign buyers and higher rates likely to impact housing market in 2018
Source: CBC News
With some big changes on the horizon in 2018, here are five key points which will impact Canadian real estate over the next year: Foreign buyers increasingly purchasing Canadian real estate, Changing stress test rules, Higher interest rates, More data on home sales, Plateaued home prices. After years of double-digit gains, 2018 is likely to be a bit more muted, Bank of Montreal economist Robert Kavcic says, adding that rate hikes and the new OSFI rules “should keep the froth from returning.”