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A Summary of Canada's Housing Market Outlook

2 min read | October 24th, 2019

Catch Up On The Latest Canadian Housing Market News

Real Property Solutions and Moody's Analytics recently published a Canadian Housing Outlook report. This report details likely conditions for the Canadian housing market in the near future.

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Alex Leduc, CFAMortgage expert and startup guy

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At Mortgauge, we believe in empowering Canadians with the info they need to make the best decisions when it comes to buying a home. When it comes to Canadian housing market news, we're always on the lookout for the latest trends and analysis. 

Here are some key takeaways from the RPS and Moody's Analytics report on Canada's Housing Market Outlook 2019:

Policy Changes

As intended, the policy changes made over the past few years have cooled the housing market. However, rising mortgage rates and slower income growth are offsetting slower house price growth. This has resulted in deteriorating affordability for Canadians.

Rents Increase in Toronto and Vancouver

If you live in one of these major cities, you'll know rental prices continue to climb at an uncomfortable rate. While most Torontonians and Vancouverites aspire to home-ownership, they find themselves hard-pressed to afford it under the new guidelines. The low vacancy rates don't help the cause, as would-be first-time homebuyers are stuck renting longer. This compression in supply and increased demand is a large reason why these cities have shown some of the strongest rent acceleration rates in the country. Below is a chart showing the annualized changes in rent across major cities in Canada:

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Increasing Mortgage Rates

They expect 5-year mortgage rates are expected to rise around 1.60% between now and 2024. Visit our website to see current mortgage rates in Canada. 

As long as macroeconomic circumstances stay normal, they expect low/no housing price growth to allow for Canadian markets to gradually bring property values back into balance. This is also referred to as a soft landing. It's worth noting that expectations vary drastically depending on the region, which would reinforce the latest push by politicians for localized housing policy.

Want more details? You can read the original report from RPS and Moody’s Analytics here 

Ready to take the first step to becoming a homeowner in Canada? Get started today with our Guide to Buying a Home.