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No "doom and gloom" in store for Canadian real estate – Royal LePage’s Soper

by Ephraim Vecina29 Jul 2020


Sustained market strength, subject to supply constraints, will be the predominant dynamic in the Canadian housing sector for the rest of the year, according to Royal LePage CEO Phil Soper and Sotheby’s Canada CEO Don Kottick.


In a joint interview with The Financial Post, the two executives highlighted the major role that housing inventory will play in the period immediately after the COVID-19 pandemic eases.

Soper said that home prices largely rely on the balance between supply and buyer activity.

“There are a lot of people who are looking to put roofs over their heads,” Soper said. “We just don’t see the number of homes for sale, the supply side of this, climbing to the point where home prices will collapse.”

Royal LePage’s latest predictions have placed annual growth by year-end at 2.5%.


https://www.canadianrealestatemagazine.ca/news/no-doom-and-gloom-in-store-for-canadian-real-estate--royal-lepages-soper-331927.aspx

MORTGAGE RATE FORECAST......BCREA


As the year ends, it's worth reflecting on how significantly the Canadian interest rate environment has changed in just twelve months. One year ago, the Canadian yield curve was its usual upward sloping shape, with markets expecting gradual rate increases by the Bank of Canada. Based partly on those expectations, Canadian mortgage rates were climbing. However, within 8 months the yield curve in Canada had inverted, bond yields tumbled, and Canadian mortgage rates were once again heading lower.


https://www.bcrea.bc.ca/economics/mortgage-rate-forecast/


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It may be legal to smoke, grow, and possess marijuana come Oct. 17, but that doesn't mean Canadians looking to purchase real estate are suddenly going to be chill about it.


According to a new report on cannabis and real estate from real estate site Zoocasa, 52 per cent of Canadians say they'd be less likely to consider specific houses for sale if they knew a legal amount of cannabis was grown in it.


https://www.huffingtonpost.ca/2018/10/15/canadians-cannabis-property-values_a_23561679/?utm_hp_ref=ca-homepage

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A recent report by RBC Economic Research warned that housing affordability continues to worsen in Canada. The ownership costs for a home bought in the second quarter of 2018 now consume 53.9 per cent of a typical household’s income.


The RBC report claims that housing affordability has not been this bad in Canada since the early nineties. In large metropolitan areas that saw a rapid acceleration in housing prices, such as Vancouver and Toronto, housing carrying costs could claim upwards of 75 per cent of a typical household’s income.


https://vancouversun.com/real-estate/the-new-housing-affordability-crisis-will-be-driven-by-higher-mortgage-rates-not-higher-home-prices/wcm/0482078c-debb-4b93-b69f-ac607f77a258

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The new North American trade deal struck on Sunday may open the door for the Bank of Canada to pick up the pace of interest rates hikes, according to economists at some of the country’s biggest banks.


With the introduction of the United States-Mexico-Canada Agreement, an October rate hike by the central bank now appears to be a lock, analysts say, with more expected to follow in 2019.


https://vancouversun.com/investing/nafta-update-will-test-polozs-caution-on-canadian-rate-hikes/wcm/5bee7fd8-dc5e-4c6e-82f8-996bd43e7f3b 

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