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Reflective Questions for Assignment 2_Money Matters

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This article speaks specifically on Toronto's condo market and how it could get rougher this year. In the past few years the condo market was extremely big.  People opting to pay a pre construction price over the course of a few years and then paying a mortgage when they can afford it.  Although now the market looks to have slowed down.

A entirely new issues is the construction cost. How that has an affect on the market. The pre sales are done before even getting approval for drawings. By the time they are ready to start construction they are way over their heads with cost. 2018 saw more then 4000 unit cancellation. Condo's are now at an outrages price with a poor resale value. Which not only affect resent buyers but new buyers decisions in the first place

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In recent years, Toronto's condo market has been a story of rising prices, rising rents, limited supply and a decoupling from the detached market. And as analysts and developers look at 2019 there are signs the market could get rougher still for new buyers, builders and renters.

The first issue could be affordability. "New condo prices are shutting out first-time buyers in the city," said Shaun Hildebrand, president of real estate market analysts Urbanation Inc. Preconstruction condos are set to top $1,000 a square foot in 2019, a dramatic 68-per-cent increase from 2016's average presale price of $595 a square foot.

Traditionally, presale condos are more expensive than what's in the resale market (a function of having to price unbuilt condos for future sale). But over the past three years, resale condo prices soared 50 per cent, initiating a frenzy in 2017-18 where buyers rushed to lock up more almost 60,000 presale deals at what looked like sure-fire discounts. "In 2017, resale prices were higher than presale ... that's what sparked that huge rush," Mr. Hildebrand said.
For subscribers: Condo buyer's guide: How to get into a hot real estate market without getting burned Related: Global real estate hot spots hit hard by market shift
Resale-price growth slowed in 2018, but Urbanation predicts prices could grow 6 per cent on average in 2019, extending the 19-month trend where condo prices grew faster than the detached home market - all the more remarkable when you consider that between 2012 and 2017 detached-home prices grew faster than condos for 62 straight months.

On the flip side, if increased supply causes resale prices to moderate, that is most likely to hurt recent buyers - including investors counting on continued high rent growth to pay the mortgage on their units. This year, developers could break records for the delivery of finished condo apartments. Mr. Hildebrand estimates almost 25,000 units might be released by developers. That's a big supply jolt for a market that has delivered fewer than 15,000 finished units over the past two years.

Urbanation analyzes records in Toronto-area multiple listing service to gauge rent growth. In 2018, the number of leased units hit 27,426, and average rents increased 9.3 per cent. While an analysis published by Rentals.ca suggested 2019's condo rents could grow 11 per cent, Urbanation cautions that even though the number of new units being rented has fallen below 30 per cent of all delivered units in recent years the sudden arrival of about 7,000 rental apartments could reduce the rental frenzy somewhat.

"One of the driving forces in strong rent growth is a low level of condo completions. As history has shown, as completions move higher rent growth tends to slow," Mr. Hildebrand said. "Not to suggest rents are going to fall; there's room to grow, but not by 10 per cent a year." The upshot is that rents will remain at record highs, but perhaps not high enough for investors who overpaid for condos in recent years.

Developers are looking at an entirely different set of problems: Construction costs rose 7.2 per cent in 2018, with no signs of slowing down as there's more units under construction in the GTA than ever before.

Gavin Cheung, vice-president of CentreCourt Developments, also thinks the combination of rising costs and slower time to construction could even cause more condo project cancellations.

There were more than 4,000 units cancelled in 2018, and if that's only 4 per cent of all the active units in the market it's still double the previous record; 2017's 1,678 cancellations.

"I think it's just the leading edge of the sword, and it's horrible for our industry," Mr. Cheung said. "It's very common in the industry to take their time [preselling], maybe 80 to 90 per cent of units, and then turn their mind to getting their drawing and approvals. All of the sudden you're two years removed from when you sold the product. The costs now really are astronomically high; if you sold in that market two or three years ago you're going to have a difficult time."

CentreCourt's buildings, focused largely in what it dubs Toronto's "east core" - the area south of Bloor Street and east of Yonge Street - are so far on schedule. One of the first releases of 2019 will happen at its 50-storey, 563-unit Grid project at 181 Dundas St. E. Even though he says it was a relatively speedy 30-month project, he acknowledges many of those presold apartments look like a bargain today.

"We definitely left money on the table," he said. "But it's good for our long-term brand - letting people outside of the developer benefit from that appreciation."
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Why Toronto's condo market could get rougher this year

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In recent years, Toronto's condo market has been a story of rising prices, rising rents, limited supply and a decoupling from the detached market. And as analysts and developers look at 2019 there are signs the market could get rougher still for new buyers, builders and renters. The first issue could be affordability.

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Ottawa Wants To Help Millennial's Buy Homes 

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Ottawa Wants To Help Millennial's Buy Homes 

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Global News released a report talking about the housing market and it's affordability.  Mainly, Ottawa wanting to help Millennial's buying homes and how they believe that can be achieved.  It is said that the preferred construction for the past 20 years have been condos.  While we should now focus on affordable single detached homes for millennial's to be able to start there families.

The Canadian Mortgage and Housing Corporation has a plan for the future. They want to address the issue of the housing supply for all over the country and recently proposed a plan to see every Canadian with an affordable home by the year of 2030.

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With the release of the federal budget pending, there is no "magic bullet" to solve the millennial housing crisis, Royal Bank of Canada is warning Ottawa.

The government is set to release its pre-election budget on March 19 and Finance Minister Bill Morneau has suggested that the budget would include measures to help millennials break into the housing market, though he didn't offer any details. Rumours have swirled about whether these measures could include introducing the 30-year mortgage option or revising the mortgage stress test rules.
WATCH: Millennials account for highest RRSP contribution, according to BMO study
RBC economists warn that taking steps to stimulate demand and increase purchasing power may not have the desired effect.

"Our view is that, while these measures could be well intended, at the end of the day, they might become counterproductive," explained senior RBC economist Robert Hoque.

"It might just stimulate the demand at the time when the supply has difficulty adjusting to that demand, so basic economics entails this is quite likely going to inflate prices and perpetuate the affordability issue."
WATCH: Home sales in Regina rise slightly to start 2019

Liberals, Conservatives and New Democrats have been trialing housing policies that could be added to their campaign platforms. A common theme is making it easier for young people to buy their first houses or condominiums.

Hogue counters, however, that instead of focusing on demand, the government should focus on increasing housing supply by making it easier for land developers to have new projects approved, and by increasing the range of housing options in the GTA and other popular areas.

"You can increase the density by various forms, alternative forms of housing. Condo apartments have been the favourite kind of housing that's been built over the last 20 years. There is room to expand that to other forms that have a little bit more space for families to grow into," Hogue said.

READ MORE: CMHC says it wants every Canadian in an affordable home by 2030

He suggests looking at building more single detached family homes to serve the needs of millennials looking to grow their families.

The Canada Mortgage and Housing Corporation has put forth plans to address the issue of housing supply across the country as part of a recently-proposed plan to see every Canadian with an affordable home by 2030.

The corporation had talked about the target with stakeholders for months as it took the lead on delivering most of the money in the federal government's 10-year, $40-billion housing strategy.

It aims, in part, to create at least 100,000 new housing units by 2028 for low- and middle-income households.

"We believe that everyone in Canada deserves a home that they can afford and that meets their needs. We also believe that we are in the best position to make that happen," Evan Siddall, the corporation's president, writes in an opening message in the document. "We are single-minded in striving toward this goal and it will guide our work in the coming years."
WATCH: Matt Lee reviews the CMHC stats for Kingston's real estate outlook
Housing prices have been steadily rising across the country until recently, after the federal government created a policy-induced affordability shock last year when it tightened mortgage rules.

Despite the revised rules, however, Hogue states that family homes in metropolitan areas such as Vancouver and the GTA are likely to remain expensive due to rapid population growth in these regions.

"The single detached homes, in regions like the GTA, have become a very expensive form of housing, and that's so unlikely to change just because population has grown so much and the land is finite," he said.

Global News previously reported that it's becoming harder and harder for millennials to afford homes across the country - especially in major cities. Even smaller downtown condos remain out of reach for middle-income millennials in Toronto and Vancouver.

READ MORE: From broom closet to detached home: What millennials can afford across Canada

Furthermore, while the government's federal and provincial housing regulations seem to have cooled off the market for detached homes, they may have intensified the competition for entry-level properties.

Some major cities, however, such as Ottawa, Winnipeg and Calgary remain in reach for young buyers.

"The affordability issue is concentrated in large urban areas like the GTA and the Vancouver area. Most of the policy discussion really is about Toronto or Vancouver," Hogue explained.

Hogue stresses that attacking the supply side of this issue isn't a quick fix - it's likely going to take time and buy-in from all levels of government.

"This is not the responsibility of the federal government alone. This is an issue that should be a concerted effort across all levels of government to address."

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Ottawa wants to help millennials to buy homes, RBC says there is no 'magic bullet'

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With the release of the federal budget pending, there is no "magic bullet" to solve the millennial housing crisis, Royal Bank of Canada is warning Ottawa. The government is set to release its pre-election budget on March 19 and Finance Minister Bill Morneau has suggested that the budget would include measures to help millennials break into the housing market, though he didn't offer any details.

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Website: Canadian Real Estate Market Outlook 2019

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Website: Canadian Real Estate Market Outlook 2019

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This site states in the article's title that the market is "stable but struggling". In 2018, the market suffered a tough year after the condition of housing in 2017 and after a brief stabilization in the summer of last year, September trended towards lower sales. "Actual activity was down 19 per cent year-over-year in December, while the national average sale price dropped 4.9 per cent". This has been attributed to mostly the stricter conditions of mortgages (the mortgage stress test) and steadily rising interest rates.
This website provides a counterpoint to some of the more positive outlooks for 2019, as it paints a picture of more of a struggle upwards and of general unchanging conditions, at least for this year.

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The Canadian housing market had a challenging year in 2018 as it struggled to regain its footing after the bubble-like conditions of 2017. It was a year characterized by decelerating sales and pricing. And it looks like 2019 may bring more of the same.

After what appeared to be a stabilizing period over the summer of 2018, national home sales have been falling since September. Actual activity was down 19 per cent year-over-year in December, while the national average sale price dropped 4.9 per cent.

Analysts chalk up these lacklustre numbers to stricter mortgage qualification rules, which came into effect in January 2018, and steadily rising interest rates. The Bank of Canada, which takes the health of the market into consideration when choosing to hike interest rates, recently noted that it had been 'weaker than expected' in December. Gregory Klump, chief economist of the Canadian Real Estate Association (CREA), recently wrote that it seems likely that housing will undermine economic growth this year, as buyers struggle to afford ownership in increasingly difficult conditions.

READ MORE: This is how Canada's housing correction begins

In numbers, that could mean a 0.5 per cent drop in sales over the next year, according to CREA, a nine-year low that could be start of a multi-year cooling period for the market.

Want a closer look at what 2019 could have in store for the market? Here's what economists are saying so far.

Not a red-hot year, but likely a stable one

The possibility of humdrum home sales in 2019 is generally blamed on two culprits - stricter mortgage qualification rules and rising interest rates.

"The probability of a steep and widespread housing downturn over the next 12 months is still low but has increased somewhat in recent months," wrote Robert Hogue and Craig Wright, two economists at RBC, in their latest analysis of the housing market. "The mortgage stress test and rising interest rates continue to exert pressure on home buyers across Canada."

The stress test in question immediately caused a nationwide downturn in sales when it was introduced in January 2018. Uninsured borrowers must now qualify at the Bank of Canada's five-year benchmark rate, or at their current rate plus an additional two per cent. That's a bar many buyers are unable to leap.

With the addition of rising interest rates, things start to look even bleaker. The Bank of Canada has been hiking rates since the spring of 2017, most recently raising the overnight rate to 1.75 in October. Higher interest rates mean higher mortgage rates, pushing some would-be buyers out of the market.

READ MORE: The people who bought at the peak of the Toronto housing bubble

While the first half of the year may see a relatively cool national market, TD senior economist Rishi Sondhi predicts that the final two quarters could see an uptick in activity.

"Barring a shock to household incomes or employment, we...suggest that an improvement in market conditions by mid-year remains a reasonable bet," he writes in his most recent analysis. "One in particular is affordability levels, which have benefitted modestly from a scaling back in Bank of Canada rate hike expectations."

Essentially, while the Bank of Canada was expected to hike interest rates at a fairly decent clip in 2019, softness in the housing market might cause it to reconsider, which would be a relief to many would-be homebuyers.

Sondhi points to several other factors underpinning the market's future-and potentially positive- performance. For one, population growth is likely to be strong, as immigration targets have grown from 310,000 to 331,000 from 2018 to 2019.

READ MORE: The most important charts to watch in 2019

Another factor worth considering? A strong job market. TD's current forecast calls for upwards of 150,000 jobs added in the next year, which should keep household incomes growing at a steady pace. With this in mind, as more and more Millennials begin to start families (what Sondhi refers to as 'household formation'), they'll start moving away from the rental market, providing a potential boost in home sales.

Of course, the story varies from location to location. The pricey Toronto and Vancouver markets both posted modest numbers in January, with prices down in both cities but sales up slightly month-over-month. Meanwhile, sales were up in Montreal and Ottawa, two markets that have seen a boost in activity due to their comparatively low price points.

READ MORE: Everyone's mortgage is about to get more expensive

"Relative affordability in [Montreal and Ottawa] has helped homebuyers take [mortgage] stress tests in stride," writes RBC senior economist Josh Nye in his most recent note. "Resales were up by double digits from a year ago [in January]. Strong demand is putting buyers in the driver's seat in [both cities], with prices up 6-7 per cent from a year earlier and showing no signs of slowing."

Less positive is the picture in Alberta, where the market continues to struggle under the effects of lower oil prices and a struggling energy sector. Resales in the province hit an eighty-year low in January, while prices in Calgary and Edmonton were down 3-4 per cent year-over-year.

What does this mean for buyers?

The buyer outlook for 2019 is a continuation of the recent past-prices will climb slowly, but affordability pressures will still present themselves.

According to the 2019 RE/MAX Housing Market Outlook Omnibus Survey, 36 per cent of Canadians are considering buying a home in the next five years, down from 48 per cent in 2018. RE/MAX blames the drop in interest on the mortgage stress test and rising interest rates, both of which are eating into the purchasing power of buyers.

The number of new mortgages dropped 11.9 per cent in 2018, according to the Canada Mortgage and Housing Corporation; the British Columbia Real Estate Association (BCREA) reported that residential mortgages in the province had slowed to their slowest pace of growth in 17 years. Those numbers are likely to repeat themselves in 2019, as many buyers find themselves unable to qualify for a mortgage under the stricter standards.

Buyers looking to make a purchase this year should remain informed about where mortgage rates could be headed in the coming years. The spring market often means that lenders will offer discounts and promotions to entice would-be customers. But a rising interest rate environment means that mortgage rates may be higher when they come to renew than they initially expected.

Talking to a mortgage broker can help secure the right mortgage pre-approval when looking for a home. Alternative lenders continue to be an option for those hoping to avoid the stricter mortgage stress test. But beware: Non-prime lenders often charge high mortgage rates, which may only be exacerbated by rising interest rates.

What does this mean for sellers?

RE/MAX predicts that home prices will increase by 1.7 per cent in 2019, a significantly more modest outlook than the red-hot prices defined the 2017 market. The exceptions are likely to be the strong Montreal and Ottawa markets, while the relatively tight PEI market could see Charlottetown prices jump 11 per cent.

Sellers in most markets should prepare for more of the same in 2019 - namely, fewer buyers vying for properties, and lower home values. Gone are the crazy bidding wars and spiralling prices of 2017.

It's worth taking the time to strategize about how best to market your property. More and more agents are using local sales data to develop their pricing strategies. Make sure you've found as much information about you area as possible before putting your home on the market.

What does this mean for current homeowners?

For homeowners who will need to renew their mortgage in 2019, things could get a bit tricky. If they renew with their current lender, they'll be able to skip the mortgage stress test. They'll also miss out on looking for a better rate elsewhere.

And with more and more homeowners opting to stay with their current lender, competition in the market will likely lower, bringing down the incentive for banks to offer lower renewal rates to catch new clients.

For owners happy with their level of debt repayment, the choice to stay with their current lender will be clear. For those looking to make the switch-likely if they haven't paid off as much of their debt as they may have wanted-will have to consider whether they want to brave the mortgage stress test.

It's also likely that higher interest rates will really start to make themselves felt, a year-and-a-half after the Bank of Canada began hiking them. Canada's Office of the Superintendent of Bankruptcy noted that there was a 9.2 per cent bump in consumer insolvencies in October of 2018, a trend that could continue in 2019 as homeowners struggle to keep up up with their mortgage payments.

What does this mean for investors?

For those looking to invest in rental property, there's plenty of money to be made in many of Canada's large urban centers.

In Toronto, while the price of a home has cooled considerably from the heights of 2017, rents continue to grow at a surprising clip. According to the Toronto Real Estate Board, the average rent for a one-bedroom unit came in a $2,163 in the third quarter of 2018, up 9.5 per cent year-over-year.

It's a similar story in many Canadian cities. While home prices are falling in Vancouver, rents were up 5.5 per cent year-over-year in Q3. A recent report from Bullpen Research and Consulting and Rentals.ca predicts that rents will rise an average of 6 per cent nationwide over the course of the year.

Those looking to purchase a rental property should do their best to find units with a lower price tag, but higher rent potential. Being close to a transit line, grocery store and university are also major value boosts. When considering such a major purchase, consulting with an accountant and mortgage broker is key.

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Canadian real estate market outlook 2019: Stable but struggling - Macleans.ca

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The Canadian housing market had a challenging year in 2018 as it struggled to regain its footing after the bubble-like conditions of 2017. It was a year characterized by decelerating sales and pricing. And it looks like 2019 may bring more of the same.

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Video: Is This Helping First Time Home Buyers?

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Video: Is This Helping First Time Home Buyers?

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CBC conducts a great report regarding the Federal governments new incentive to "help" first time home buyers with there mortgage.  They break it down in a very simple and understandable way for everyone to be able to grasp the concept.

A young man is interviewed during the process of the video and gives his opinion on whether or not he believes these steps are enough for to get millennial's into the housing market. With concrete facts and examples provided in the video we can see that it does help but is still not nearly enough to be able to help millennial's. The government has to take bettwer initiative and built affordable housing from the beginning.

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Budget housing plan targets 1st-time homebuyers

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The interview begins with Phil Soper stating his opinion on the mortgage stress test. The Toronto Real Estate Board has stated that the requirement that someone must be able to qualify for a mortgage 2% higher than they are actually borrowing, is something that needs to be eliminated. He says while these complaints are completely understandable, because when an industry is contracting and regulation gets in the way, it is natural for them to want to eliminate it. He thinks that it is beneficial for the long-term economy because having that requirement mitigates the risk of said mortgages.
This video was included to showcase the two different perspectives on the mortgage stress test. While you may agree that having to afford a mortgage 2% higher than what you need is unfair, you must acknowledge the fact that it does mean that the mortgages given will have lower risk factors.

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Mortgage stress test working for Canada’s housing market, says Royal LePage CEO

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Below is an interesting chart showing how living situations have changed for millennial's between the age of 20-34. The charts statistics are taken from 2001 to 2016. It just goes to show how the Canadian housing market will affect everyone.

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Video: Canada's Housing Market Correction

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Video: Canada's Housing Market Correction

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In this video, Larysa Harapyn  of the Financial Post interviews Murtaza Haider and Stephen Moranis of Haider Moranis about their predictions for the 2019 housing market. While they agree that no prediction is correct, they are cautiously optimistic moving forward that Canada's market will continue to improve in 2019.
This video was included to show that while it has been a tough few years for real estate, the market is on the rise especially in larger cities with bigger populations, according to Haider. While Moranis is also optimistic, he expresses that movement in the market will likely not be up or down, but more "sideways", meaning that while there is no extreme upward trend there is positivity in the market remaining good.

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Canada's real estate market will likely see further correction in 2019, as fears of higher interest rates and stress tests continue to weigh on the sector, according to analysts.

After a period of double-digit growth in key markets over the past few years, Canada's real estate sector came back down to earth in 2018, broadsided by tighter rules. Home sales activity was down 12.6 per cent year-on-year in November, below the 10-year average for the month, according to the Canadian Real Estate Association.

CREA expects home sales across the country to decline to the lowest point in nine years in 2019.

"We are in a broad-based real estate correction in 2018, and we think that it will take the year to work its way free of the overshooting that occurred in 2014 through 2017," said Phil Soper, president of Royal LePage.

A key factor driving activity next year would be interest rates, which, until recently, were expected to edge higher as Bank of Canada looked to "normalize rates."

The bank raised the benchmark interest rate to 1.5 per cent in July, but since then appears to have reined in its enthusiasm amid a slowing economic environment.

The bank has also argued the worst in the housing market is over and markets are stabilizing.

"But, from our vantage point, it's difficult to agree," wrote CIBC Capital Markets analysts Benjamin Tal and Royce Mendes in a note to clients. "The central bank's own workhorse model says it takes six quarters before the full impact of any rate hike is felt in the economy. So it's concerning for the outlook then, that only five quarters since the first move of this cycle, let alone subsequent rate increases, we're already seeing a slowdown in housing-related indicators."

A rate pause would come as a relief to mortgage buyers at a time when Canadians' household debt to disposable income is at a record level of 170 per cent, Canada Mortgage and Housing Corporation's estimates show.

"In the most expensive cities - Vancouver and Toronto - a quarter of one percentage point on an average house does become pretty significant," said Soper.

Another key driver in 2019 will be the looming shadow of Bill B-20, imposed in early 2018 by the Office of the Superintendent of Financial Institutions. The "stress test" required banks to assess people's ability to pay assuming interests were either two per cent higher, or greater than the five-year benchmark rate published by the Bank of Canada. Royal LePage and PricewaterhouseCoopers predict the stress test will continue to weigh on the markets in 2019.

"The days of everyone being able to have a white picket fence and a detached house of their own are rapidly receding," said Don McClintock, president of the Vancouver Island Real Estate Board. "Young people have to be prepared to live in townhouses and duplexes, and maybe even condominiums. We're going to have to change our expectations to meet the new budget."

The days of everyone being able to have a white picket fence and a detached house of their own are rapidly receding

Don McClintock, president of the Vancouver Island Real Estate Board

The squeeze on millennials comes as a large demographic in the age group look to buy their first house. This will likely strain already-saturated markets in Toronto and Vancouver. In the Greater Toronto Area alone, 700,000 millennials will be in the market for a home in the next decade, according to a study sponsored by the Ontario Real Estate Association.

But cutting off young buyers could have sequential effects next year, says Elton Ash, RE/MAX Regional EVP for Western Canada.

"When you affect these first-time home buyers, they are the initial dominos of what drives the market. Because as an existing home owner, if you don't have anyone buying your house, you can't move up or move over."

Here's how Canada's four real estate markets are expected to perform in 2019:
TORONTO

Royal LePage expects the GTA market to make modest gains, with home prices rising 1.3 per cent, while RE/MAX is forecasting a two per cent gain.

Between 2017 and 2018, home sales dropped by 16 per cent, from around 80,000 to less than 68,000. With prices still at elevated levels, RE/MAX estimates this number will continue to drop next year. However, Alexander says there is no shortage of demand - immigration to the GTA will continue to have an impact on the market.

"Toronto is not only a big destination for Canadians, but also globally," said Alexander. "The average amount of people moving into the GTA is about 100,000 a year - we don't expect that number to decrease."

Indeed, PwC is reporting a 15-year high in net immigration to the GTA. The management consultancy ranks Toronto as Canada's top market to watch next year, with land costs expected to reach Vancouver levels by next year.
VANCOUVER

Analysts are divided over the prospects for the Vancouver real estate market. While Royal LePage forecasts Vancouver properties to stay relatively flat on average, PwC estimates a 2.9 per cent gain, and RE/MAX estimates a three per cent drop in average residential sale prices in 2019.

While the economic outlook is good, foreign buyer activity is expected to slow down. Vancouver's empty home tax, where properties deemed vacant are subject to a one per cent tax on the property's 2018 value, will continue to deter overseas buyers.

But RE/MAX's Ash said the foreign buyer tax is not felt by all investors equally. While the 20-per-cent tax is off-putting to many, Chinese buyers look at the tax as "a cost to do business." He anticipates the trend will continue in 2019.

Even with reduced foreign ownership, McClintock says low affordability rates will continue to be a problem next year.

"When the houses in Vancouver are averaging about one million (dollars), there are some real problems of affordability."
MONTREAL

The Greater Montreal Area is expected to see the largest gains among key markets, with home prices expected to rise three per cent, predicts Royal LePage. The real estate agent attributes the surge to a historically low unemployment rate and an influx of foreign buyers. While Toronto and Vancouver were galloping ahead with 20 per cent increases, says LePage's Soper, the Montreal market was relatively flat, but now "it's been discovered."

Yet Soper said he doesn't see Quebec's most populous city surpassing Vancouver or Toronto in foreign investment in 2019, given that inventory is tight in Montreal and building hasn't kept up with demand. He also notes Montreal doesn't have the same communities of immigrants as the other two Canadian cities.
CALGARY

Median home prices in Calgary are expected to decrease 2.3 per cent in 2019, according to Royal LePage, citing persistently weak oil prices and the resulting low buyer confidence. RE/MAX estimates the average residential sales price will remain flat but could shift dramatically in 2020 because of the province's dependency on oil.

Alexander notes that in 2014 a similar oil market in Alberta and Newfoundland moved the real estate scales.

"Prices did come down more than five per cent, so I think it could have an impact. Just how big will be determined by how big the oil crisis is."

Calgary's housing market remains oversupplied, with vacancy rates around 6 per cent, according to the Canadian Mortgage Housing Corp. However, new residents could fill up empty properties in the years to come, with the city's population estimated to grow by 26,300 annually, according to an October 2018 report by the City of Calgary.
* Email: igalea@postmedia.com

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Canada's housing market correction isn't over, analysts warn

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Canada's real estate market will likely see further correction in 2019, as fears of higher interest rates and stress tests continue to weigh on the sector, according to analysts. After a period of double-digit growth in key markets over the past few years, Canada's real estate sector came back down to earth in 2018, broadsided by tighter rules.

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Image: Is Canada's Housing Market Overvalued?

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Image: Is Canada's Housing Market Overvalued?

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This image compares Canada's housing market in two separate ways.  Firstly in the line graph, it compares nominal house prices against the average income for the US and Canada. The bar graph compares both countries again, but uses median (middle) home prices.
The goal of this image is to show that the housing market in Canada is not actually that bad, but I think it does not exactly hit the mark. This is because I believe it makes more sense to compare the average income, as it takes into account everybody's income whereas comparing the median income gives a less accurate representation of what everybody is making and can therefore afford.

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Website: March Monthly Housing Market Update

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Website: March Monthly Housing Market Update

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This is a link to RBC's monthly report of the housing market in Canada. It provides information on rising and falling of markets in key areas like Toronto and Ottawa, as well as the trends and whether the market is generally good or bad.
According to the report, this month is not a good one for the housing market. Resale value has fallen the lowest since last year, and year-over-year price growth is negative for the first time in ten years. This is especially significant right now in Calgary, Edmonton, and Vancouver

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Video: Will Affording A House Be Harder In 2019?

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Video: Will Affording A House Be Harder In 2019?

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In the link posted below is a video regarding the affordability of Canada's housing market. Two Real estate agents discuss what the market is looking like in Toronto and Vancouver. As well as what changes may be in the near future.

The housing market is relatively slow at this moment because of unsure interest rates and new buyers wanting to "wait it out". Homes are taking longer to sell, especially in Toronto were the condo market is through the roof. Buyers feel safer paying a 20% deposit on pre construction  over the course of 2-3 years where, to wait until they can afford a mortgage.

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Affording a house will be harder in 2019: Report