The Story in 2018 and early 2019 was weak sales; story in 2020 will be lack of supply – CREA
Did you know that the housing inventory in the last quarter was at its lowest in the decade? According to the Canadian Real Estate Association, the number of newly listed homes slid a further 1.8% in December, driven mainly by fewer new listings in the GTA and Ottawa.
Furthermore, the Bank of Canada is widely expected to not raise interest rates and the low mortgage rates in 2019 are expected to continue throughout the new year. According to the letter by Prime Minister Justin Trudeau, there can be potential adjustments by Federal Finance Minister Bill Morneau to the Federal Stress Test Criteria, providing more flexibility when qualifying borrowers. The growth in population and income also indicates the increase in qualified home buyers, hence the high demand for housing.
If this trend continues, there will be an increase in competition between buyers, and if the housing supply rate remains low, we are highly expected to see an escalation in prices. The CMHC Housing Market Outlook also forecasted the house prices to elevate in 2020. This means that the Canadian Real Estate Spring Market is expected to be hotter than usual and The GTA is likely to be a Seller’s Market this year!
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