By The A-Team | Mar 13, 2019 | Local News
The housing market is one of the ever-changing industries in the world but you most probably know that already. Our latest set of news in the real estate niche will show you just that yet it would be wiser if you take the trends as some kind of warning. Why?
For our first news, this report from the Bank of Canada is a double-edged sword for some obvious reasons and the trends are interconnected:
According to the report, another significant factor is the slower housing market due to numerous reasons such as stricter mortgage qualification rules. The future of interest rates will show a more lenient standpoint on the economy.
Bank of Canada Announces No More Rate Hike for MarchThe Bank of Canada (BoC) officially turned dovish in today’s scheduled rate announcement, keeping its trend-setting Overnight Lending Rate untouched at 1.75%, and explicitly stating lower interest rates will continue to be necessary in the current economic climate.
The central bank says its stance was influenced by a surprising report issued by Statistics Canada last week that revealed the economy grew by only 0.1% in the last quarter of 2018. This is despite already forecasting a temporary downturn due to challenges in the oil patch, softer housing market, and less household spending. – Via zoocasa.com
Financial institutions in Canada are also showing how the housing market is affecting them such as this next report:
Mortgage figures are plummeting from the peak and the latest trend of declines in the housing market is getting larger than ever. Industry watchers are taking this trend as a warning especially for potential homebuyers.
Less Bank Mortgages in Canada this Year ConfirmedSlow Canadian real estate sales may be starting to weigh on the country’s largest banks. Canadian Bankers Association (CBA) numbers show an annual decline in mortgages. The annual decline of mortgages is the first for the country’s largest lenders.
Canada’s largest banks are seeing the number of mortgages they hold decline for the first time ever. The most recent three months of data is the first time the country’s largest banks held less than the year before. – Via betterdwelling.com
Lastly, such trends as shown by the Canadian financial institutions above led to what we have for our third news:
The signs of slowing down in the residential construction became more prominent in the market today because of the tougher mortgage rules as well as affordability issues especially in major housing markets.
Canada Experiences Fewer Construction of New HomesCanadians who are looking to buy homes aren’t the only ones feeling the pinch from mortgage rules the federal government brought in last year.
The rate of homebuilding in the country took a surprising tumble in February, and it’s related to mortgage stress testing, which raises requirements to qualify for a loan, says a leading economist. – Via livabl.com
It is undoubtedly one of the most daunting times in the Canadian real estate niche with the unpredictable changes here and there. Find out more in our roundup of housing market news next week.