Canada housing market: Latest News

mortgage rates are ratcheting up the pressure on Canadian landlords, especially young investors who are facing the harsh side of the interest rate cycle for the first time.A report released Thursday by Royal LePage shows higher payments are even pushing some housing investors to consider selling off their properties. But for 32-year-old Karim Najjar, that decision is about more than just writing off the loss on an investment.Najjar moved to Ottawa from Edmonton in 2017 and jumped into the housing market a year after he arrived.His timing into the market was good, Najjar recalls, as home prices soared in his first few years of ownership.

Stable interest rates and a continued cooling in home prices helped give housing affordability in Canada its biggest jump in almost four years in the first quarter of 2023, according to a new report.

real estate investors might ratchet up the pain in the rental market in the coming years.The report, released Monday from CIBC and Urbanation, shows that for a majority of real estate investors in the Greater Toronto Area (GTA), the business case for their rental properties is falling apart.

Signs of recovery in Canada’s housing market after a year-long slump, just as higher borrowing costs are expected to slow much of the rest of the economy, could raise inflation and delay a shift by the central bank to interest rate cuts, analysts said.

CMHC, as those boxed out of an unaffordable housing market compete for a limited supply of rental homes.Canada Mortgage and Housing Corp.’s new housing outlook released Thursday warns that rental market conditions in Canada are “expected to further tighten,” raising rents in major markets such as Toronto, Vancouver and Montreal.The existing rental supply is already low, CMHC pointed out in the report, and competition for these units is only getting hotter amid strong immigration levels in Canada.Data from rentals.ca shows that the average rent in Canada was just over $2,000 in March, up 10.8 per cent from the same month last year. The average monthly rent for a one-bed apartment in Toronto rose 22.2 per cent annually.Bob Dugan, chief economist at the CMHC, told reporters on Thursday that the short supply of rental homes is especially evident when units turn over in markets such as Toronto.Last year, the average rent for a Toronto unit that changed hands soared 29 per cent from the previous tenant’s rates, compared with a typical increase of around two per cent year-over-year for renters who stayed in their units, he said.“That’s because there’s not enough supply.

interest rates over the last year is starting to throttle the pace of homebuilding, the Canada Mortgage and Housing Corp. (CMHC) warned in a new housing supply report Wednesday.As the Bank of Canada’s interest rates rose substantially through 2022 and early 2023, many homebuyers were priced out of the market and home values retrenched from their pandemic-era highs.

Despite a sizeable drop in home prices over the past year and a slew of federal government measures aimed at addressing housing affordability, a new poll suggests Canadians are no more encouraged about breaking into the housing market.

The Bank of Canada held its benchmark interest rate steady on Wednesday — a decision real estate players and economists say will have major implications for the Canadian housing market.

recession is on the cards as they look ahead to 2023.Though plenty of Canadians remember living through a recession or two, for millions of others it will be the first major downturn in their adult lives. Some are in their late 20s, perhaps thinking of buying a house or already homeowners.

Signs that the Canadian housing market might be cooling are coming too late for many prospective homebuyers, as their ability to save for a home is dampened by inflation and rising interest rates limit their ability to catch up the high home prices marked by the COVID-19 pandemic.

The apparent cooling in Canada’s housing market is leaving many buyers and sellers alike confused about how to price and bid on homes in the normally fervent spring market, real estate brokers say.

The dream of ever owning a home is looking bleak for a majority of Canadians shut out of the housing market, according to new polling from Ipsos.

COVID-19 pandemic.Real estate agents say after months of end users driving sales, investors are again a factor in the market and flipping activity is picking up. In response, desperate buyers are over-extending themselves, paying tens of thousands more than originally budgeted just to get in.While Bank of Canada Governor Tiff Macklem in February acknowledged “some signs of excess exuberance” in the housing market, he downplayed the need for action.

housing market from the COVID-19 pandemic.The Crown corporation says it expects the housing market will have to reckon with significant short-term uncertainty, as well as falling housing demand from weaker household incomes in the medium term. Mortgage deferrals will soon end for many Canadians.