With many changes made to Canada’s Real Estate policies in 2017, we are going to see a lot of effects from these changes in 2018. Here are three trends that sellers and buyers should keep in mind this year:
- It will be more tough to borrow. Starting January 1st a minimum downpayment on a property in Canada rose to 20%. It is also expected the Bank of Canada will hike this minimum amount by end of the year. This will be felt most by first time home buyers as new mortgage applicants will have much more to prove. The rules also refuse co-lending to take place, meaning families can’t pool multiple loans together to meet qualifications.
- Condos will fuel the market. Throughout 2017 condos were the most stable and rising type of housing in demand; mainly because of affordability as homes are out of price range for many homeowners. In the month of November in Toronto, the average cost of a condo rose 17% compared to a 5.1% decline in the value of other types of homes in the city.
- Developers turn to a family centred focus. Bigger families need to live somewhere. This trend will be somewhat of a reserve from the “micro-condo” trend popular with single professionals and investors in the downtown areas. But this year more developers are looking to create larger units with families in mind. Also think condominiums with kid playrooms in addition to the adult party room.
So look out because 2018 looks a whole lot different than 2017!