4 Trends In The Canadian Housing Market for 2019
As we head towards 2019, a growing number of Canada’s would-be home buyers are hoping for a market crash.
The experts aren’t so sure that that the market will crash. However, they are unanimous that the days of rapid housing prices are over in most Canadian housing markets. They also feel that the next few years are likely to see slower sales and tepid, if any, price growth.
Here are four trends in Canada’s housing markets in 2019:
1. More homeowners will default on their debts
A recent forecast from the country’s licensed insolvency trustee’s industry group predicted a spike in defaults among Canadian households starting in early 2019. Recent data has suggested that the increase in defaults has already begun; ahead of schedule.
2. Housing affordability will be an election issue
A recent poll has found that housing affordability has climbed to be the top issue for millennials, who next year will make up the largest voting cohort in the federal election. 64% of millennials want the federal government to do something about house prices.
3. Affordability won’t get much worse (because it can’t)
According to RBC economists, they don’t see affordability worsening much, thanks to softening price growth (or outright price declines) in some markets. And there is another reason affordability won’t worsen much: it can’t. At current price levels and mortgage rates, home affordability is at its worst levels since the early 1990s, when a housing bubble and rising interest rates sent ownership costs through the roof.
4. The market won’t crash
Barring a major economic crisis in Canada next year, a market crash is highly unlikely. The largest contributors to the U.S. economic crash in 2007 were subprime mortgages, which exposed many borrowers to payments they could never afford. According to a recent study from Chartered Professional Accounts (CPA) Canada, Canadian mortgage borrowers are much more credit worthy.
Canadian financial debt is on the rise, and experts are encouraging Canadians to start taking the warnings about debt loads seriously. There are many options out there to help people address and resolve their debts; being able to live their lives financial stress free.
If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900.2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.