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Clients looking for new homes can expect price increases in 2018, but those increases are expected to be tempered.

New, stricter mortgage rules are expected to slow the housing market next year, but prices are still expected to rise about 5%, forecasts a report by Royal LePage.

In its market survey forecast, the real estate firm says its house price composite, which measures prices in 53 Canadian cities, is expected to increase 4.9% next year to $661,919.

A new stress test for homebuyers who don’t need mortgage insurance will be required starting next year.

The new rules are expected to reduce the maximum amount buyers will be able to borrow, for those with a down payment of 20% or more.

Read: Mortgage changes make it tougher for first-time buyers: industry group

The Royal LePage report suggests home prices in the Greater Toronto Area are expected to increase 6.8% in 2018, while the Greater Montreal Area is expected to see an increase of 5.5%.

Read: Condo sales push Montreal real estate to November record

Greater Vancouver is expected to increase 5.2% in 2018.

Royal LePage’s forecasted home prices for various cities are shown below.

Region 2017 aggregate home price

(estimate)

2018

aggregate home price

(forecast)

Year-over-year 

(%)

Canadian House Price Composite

(53 Cities)

$631,000 $661,919 4.9%
Greater Toronto Area $844,000 $901,392 6.8%
Greater Montreal Area $387,000 $408,285 5.5%
Greater Vancouver $1,287,000 $1,353,924 5.2%
Ottawa $444,000 $458,208 3.2%
Calgary $483,000 $494,109 2.3%
Edmonton $388,000 $382,180 -1.5%
Winnipeg $303,000 $315,120 4.0%
Halifax $319,000 $326,975 2.5%
Regina $327,000 $329,289 0.7%

 

Also read:

Canadians’ net worth, mortgage debt rise

Originally published on Advisor.ca
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