A report from senior economist Robert Hogue, reflects on a year where the Canadian Housing Market faced challenges but also saw a return to more normal conditions with inventory tightening, buyer demand and prices rising.
He notes that sales in October were 7.3% above the 10-year average and prices increased 1.8% year-over-year as the pace increased over the past four months.
He highlighted the scant housing inventories in Ottawa, Montreal, and Halifax and tightening inventory in Toronto and Vancouver.
However, he stated the market is in better shape than it was at the start of 2019 due to low mortgage rates, solid labour markets, and strong population growth in Canada, with the exception of the prairies where sales and prices continue to lag.
His 2020 Predictions:
- Outside of the Prairies, demand and prices will rise at a moderate pace.
- Affordability in Toronto and Vancouver will continue to be a concern even after improvement in 2019.
- The housing market should be further supported by any expansion of the first-time homebuyer incentive.
Reference: http://www.rbc.com/economics/economic-reports/canadian-housing-forecast.html
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