Relocating to Canada: High Activity and Prices in Many Markets and Small Interest Rate Increases
Posted by: Linda LaChapelle, Director, Mobility Solutions
Canada has continued to enjoy a strong, stable real estate market for years, with high demand and near historic low interest rates. I would like to share Cartus’ recent Canadian Real Estate Market Overview, provided courtesy of Coldwell Banker of Canada, which provides current market information for Canada and forecast data for the rest of 2017 and looking forward to 2018.
How Do Regional Real Estate Trends Impact Your Canadian Relocation Program?
According to the latest quarterly forecast issued by The Canadian Real Estate Association (CREA), housing market trends continue to diverge considerably among four distinct regions:
- Some areas of BC are showing signs of recovering from last year’s correction after the August 2016 introduction of a 15% foreign buyer tax in 22 Vancouver markets.
- In Ontario, sales activity has cooled following housing measures introduced by the provincial government in April, including a 15% foreign buyer tax in the Greater Golden Horseshoe region.
- In natural resource intensive provinces, sales activity is running at lower levels and supply remains elevated.
- In other markets of Canada, rising sales have drawn down previously elevated levels of supply and balanced market conditions remain in these markets.
Interest rates rise for the first time in seven years
In July, The Bank of Canada raised interest rates by a quarter percent for the first increase seen in seven years. This was anticipated and rates are still mostly near historic lows, and Canada’s economic growth forecast is strong.
Highlights of Canadian Real Estate Market for 2017 and 2018
Following are a few highlights just in from the Canadian Real Estate Association (CREA). For the rest of 2017, national sales activity is forecast to decline by 1.5%. The national average price is forecast to rise by 7.4%, led by Ontario.
Looking forward to 2018, national sales activity is forecast to see modest declines, with fewer sales in BC and Ontario as the result of interest rate increases, and the national average price is forecast to rise 1.8%.
After reading Cartus’ latest Canadian Real Estate Market Overview, please feel free to email me at email@example.com with any questions you may have on the Canadian market. Also, please be sure to visit us at our booth at the Canadian ERC Conference, September 10-12 in Calgary. We look forward to seeing you!
For Additional Information on Trends in Canada, Download our Survey Report
If you are responsible for your company’s Canadian relocation program, we encourage you to download Cartus’ 2017 Canada Relocation Policy & Practices survey, which addresses key trends in Canadian relocation, including flexible policy approaches, support for homeowners, temporary and rotational assignments, and more. Email us at firstname.lastname@example.org if you have any questions on the survey findings and how they apply to your program.