Sales To Further Drop Down Due To New Mortgage Rules

Nationally, the sales figure for homes went down by 11.5 per cent in light of the recent mortgage rules that was endorsed by the government. The RBC Economics review showed that the average prices will still increase, however, the growth will go up by a modest 1.6 per cent in the coming year, unlike the 9.5 per cent increase that was experienced this year.

The sales in Manitoba is expected by RBC to drop by 3 per cent, while in British Columbia, it will decline roughly by 24 per cent. The high figure represented by BC signifies the extra assistance from the provincial tax for foreign buyers.

The benchmark price should increase in all the provinces, however, places like Alberta and Saskatchewan, Newfoundland and Labrador won’t see any rise in their prices.

Generally, there won’t be any chances of a crash, although there is likely  to be a soft landing which will cause additional possible risk to the market, both negatively and positively. The outlook assumes that there won’t be any policy changes in the future.