The Canadian Housing Market: Rising Prices and a Glimmer of Hope
Pop the kettle on and get cozy, folks, because the real estate market across Canada has just set new records! But we aren't talking about the fun kind here.• Canadians are finding it harder than ever to pride themselves as home-owners, with rising mortgage rates and escalating home prices pushing the RBC's national housing affordability measure up 2.8% in Q3 to a dizzying 62.5%. • Robert Hogue, the assistant chief economist at RBC, has let the cat out of the bag by stating "The significant loss of affordability during the pandemic has shrunk the pool of homebuyers in Canada", and boy, has it shrunk significantly! • The RBC's affordability measure shows a severe dip in the percentage of Canadian households eligible to own a condo. We've journeyed from a comfortable 60% back in the glory days of 2019 to a grimacing 44.5% today! Single-family homes? A meager 25.7%! • Hold your maple syrup, because there's some sweet news too! Over 75% of households in Manitoba, Saskatchewan, and Alberta can afford to own a condo, along with over 50% of households in good ol' Quebec, Nova Scotia, and Newfoundland, and Labrador! However, Ontario and British Columbia? Let's just say they've seen better days. • Late-night chats about home affordability in Toronto, Victoria, and Halifax are breaking the roof, topping worst-ever levels, while Montreal, Ottawa, and Saint John are biting their heels in record-high levels. • Now here's the doozy, in Vancouver, an average home has become a luxury item as the affordability measure has skyrocketed, reaching a staggering 102.6%! Now, for my hot take: HOME-y don't play that game! Sure, the housing market in Canada is more like climbing Mount Everest than a walk in the park right now. Heavy-breathing learners are scrambling to keep up with the professional mountaineers of the real estate world. But folks, a glimmer of hope exists. Robert Hogue predicts some "modest relief" on the way as incomes grow, home prices stabilize, and interest rates start to fall around mid-2024! So, hold your sled, 'cause we might just have a smoother ride into a more affordable future! Surely the rebound might be slow and modest, but remember, good things come to those who wait! Stay hopeful, Canada!