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This image shows a comparison in house prices in Canada. In the lead, is Vancouver with the highest prices. And surprisingly Ontario has the lowest prices

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This graph compares three things. It compares, household debt (Grey), housing prices (red) and the blue is the interest rates (

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This image shows two graphs. One that depicts housing prices versus average income of Canadian. The other one shows a combination of median home prices vs household income. As you can see Vancouver is one of the more noticeable numbers on the graph.

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This is an article written by MoneySense and it speaks about the expectations for the housing market in Canada. They are predicting that sales activity will decrease in every provinces, with the largest decrease coming from British Columbia at 12.2%. Also they predict that spring will be the hottest season for housing as it has for years past. During this period prices can spike up to 10%. Compared to other company's that have made predictions for 2017 I think that this one is more specific in terms of breaking it down by province.

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For homeowners the great, big, unanswered question is whether or not the Canadian real estate market will finally crash in 2017.

Turns out, all reports and analysis lean towards a flattening out of property prices in most Canadian markets, with some areas of the country experiencing a decline in both sales activity and prices, as other areas continue to experience price gains, albeit at a much slower pace than we've seen in recent years.

Keep in mind, housing markets are not as prone to bubbles, and to burst bubbles, when compared to other financial markets. This is, in part, due to the large transaction and carrying costs associated with owning real property. However, over the last few decades, the combination of very low interest rates and the regulations that allow easier access to mortgage financing has prompted more borrowers to enter the real estate market and this has put increased pressure on demand. For a crash to occur, there would need to a sudden drop in demand, such as a fairly quick rise in interest rates or significant a tightening of credit standards.

Expect sales activity in 2017 to decline, for the most part

According to the Canadian Real Estate Association (CREA) , national sales are forecast to drop in 2017 by 3.3%, compared to the previous year. In its annual year-end report, CREA states: "Transactions in B.C. and Ontario are anticipated to remain strong but fall short of this year's record levels due to deteriorating affordability, an ongoing shortage of affordably priced listings for single family homes and tightened mortgage regulations."

As a result, CREA predicts:

→ Home sales to decline in B.C. by 12.2%

→ Home sales to decline in Ontario by 2.7%

→ Home sales to decline in Saskatchewan by 1.2%

→ Home sales to decline in Nova Scotia by 2.1%

→ Home sales to decline in PEI by 2.2%

→ Home sales to decline in Newfoundland & Labrador by 1.4%

However, not all areas will see price declines:

→ Home sales will rise in Alberta by 3.5%

→ Home sales will rise in Quebec by 1.2%

→ Home sales will rise in Manitoba by 0.8%

→ Home sales will rise in New Brunswick by 1.6%

A decline in sales activity should prompt a decline in prices as less activity is usually a result of less demand and less demand usually translates into lower house prices.

For instance, the reduction in home sales in PEI is due, primarily, to an unusually strong 2016 selling season, that "is not expected to reoccur in 2017," CREA explains in its year-end report. Still, the province can still expect to reap the rewards of a weakened Canadian loonie.

But not all markets should expect price drops in 2017. According to CREA predicitions, home sales will rise in Alberta and Quebec primarily because both markets experienced a slowdown in 2016.

Still, a decline in sales activity will prompt a modest decline in home prices in a few provinces, including: B.C., Saskatchewan, Nova Scotia, PEI and Newfoundland & Labrador.

As a result, CREA predicts that the national average price will actually decline in 2017 by 2.85%, to $475,900.

Average prices in 2017: Toronto and Golden Horseshoe

Despite a predicted decline in sales activity for 2017, most of Ontario's housing markets won't experience price declines this year. This is particularly true for homes located in the Greater Toronto Area and in the larger Ontario region known as the Golden Horseshoe. This is due, primarily, to a pronounced lack of supply of housing stock, particularly for low-density, single-family detached homes.

This lack of supply means that seller's are sitting pretty in a very heated seller's market, which is measured by the months of inventory (ROI) ratio. The basic rule of thumb is that an ROI that's below four months (120 days) is solidly in seller's territory; by the end of 2016, the GTA had 36 days of inventory.

This obvious lack of inventory certainly had an impact on housing prices. Between November 2015 and November 2016, the average selling price of a GTA home rose to $776,684-up 22.7% on a year-over-year basis.

As a result, anyone in the market to sell a home in the GTA or in the surrounding areas, including Niagara, Hamilton, Halton, Peel, York and Durham, can continue to expect strong demand. This should translate into higher sale prices and fewer days on the market.
Read more: Greater Toronto's real estate market outlook 2017 "
Average prices in 2017: British Columbia

Probably the largest regional drop in both sales activity and prices will be in British Columbia. Given how 2016 played out, with significant drops in both the number of transactions and sale prices, CREA anticipates double-digit drop in transactions (12.2%) in 2017, which translates into an average price drop of 7.8% in 2017.

"This largely reflects an anticipated decline in single family home sales activity at the higher end of the market-particularly in the Lower Mainland," explains CREA's Chief Economist, Gregory Klump.

Vancouver Royal LePage Realtor, Adil Dinani confirms that the second half of 2016 saw relatively consistent declines in Lower Mainland activity and prices. "Sales in this region dropped by almost 40%, year-over-year," explains Dinani. "But the real takeaway is that inventory levels are very, very low." According to Dinani new listings were down by 58% from November to December 2016, and down 35% from November 2015 to November 2016.

"We'll see more of the same in 2017, unless there's an influx of supply that comes on the market."
Read more: B.C. real estate market forecast for 2017 "
Average prices in 2017: Rest of Canada

Meanwhile, an ample supply of listings relative to demand is anticipated to keep price gains in check in other provinces, although sales have begun to draw down inventories in provinces where supply had been elevated in recent years.

The biggest factor in the predicted 2017 slowdown are the tighter mortgage regulations that were introduced in 2016. "Tightened regulations are expected to reduce the number of first-time buyers who qualify for mortgage financing, particularly in pricier markets, where there is a severe shortage of lower-priced listings."

Another factor is that mortgage rates are expected to rise in 2017. While the increase is expected to be slow to moderate, this increase-due to increased capital cost requirements for lenders and the possibility of inflationary economic policy under President Donald Trump-will also reduce the number of home buyers in the Canadian marketplace.
Read more: How accurate was our 2016 outlook? "
Watching the bubble burst isn't a sure bet

Yet, nobody can say with absolute certainty that there is a bubble and that 2017 is the year it will burst. Just consider the real estate slowdown in Calgary. We all expected massive price drops when oil prices plummeted, but, in the end, Calgary real estate didn't suffer all that much. Yes, there were price drops, but most neighbourhoods saw price reductions that were less than 5%. And now, many economists are predicting that the worst is behind this oil-driven city. So nothing is certain when it comes to Canada's real estate markets.

Those expecting a housing price bubble burst are probably only anticipating price collapses in Toronto and Vancouver. Why? Because if you were to strip out Toronto and Vancouver from the Canadian real estate market, the average price of a home would be closer to $361,000 (compared to the national average, as of November 2016, of $489,590). This isn't too bad, considering the median household income was just under $79,000, as of 2014, according to StatsCan data. This puts house prices at 4.6 times family incomes-a little higher than the average over the last 40 years, which is closer to 3.5 times income. (And these days, homeowners have the benefit of historically low 2% to 3% mortgage rates.)

Impact on net worth of Canada's homeowner

For those already in the marketplace, the real threat is whether or not changing conditions will result in price declines and whether or not that will erode overall household net worth.

A report in December 2016 by DBRS, a Canadian-based ratings agency, suggested that rising home values pushed Canadians to a record level of net worth, relative to their disposable income. But, here's the interesting part: DBRS believes that even if the Canadian housing market did crash, current homeowners could easily weather the storm.

Hold steady

According to DBRS, the average Canadian household had a net worth of $726,000-including 74% of home equity, thanks to a decade of steady property appreciation (DBRS numbers were based on data up to Sept. 30, 2016).

So, even if the Canadian housing market were to crash by 20% to 40%, Canadian household equity ratios would remain strong-decreasing to a low of 56.7% and a high of 67.5%. In relative terms, that's like owning a home valued at $900,000 one day, but still paying off a $234,000 mortgage, only to see the home's value drop to $744,300 (while your mortgage debt remains the same). Obviously, nobody likes to lose money, but even this worst case scenario, doesn't mean the complete destruction of your nest egg.

Check your mortgage terms

Still, as a homeowner, you need to make sure you're well positioned to weather the uncertainty of the next few years. If you have stable household income, 2017 will probably let you ride out continued low variable-mortgage rates. However, if you're in the market to renew, consider locking in. As of mid-December the spread between five-year fixed and five-year variable rates was negligible, at best. For example, VanCity was offering a five-year variable at 2.59%, while its five-year fixed was 10 basis higher at 2.69%. That's a small premium to pay for peace of mind.

Still, with mortgage rates poised to rise, this might be the year to tackle your biggest debt. For tips on how to pay off your mortgage faster, read Crush your mortgage (a lthough, there are some valid arguments against paying down your mortgage sooner whiles rates are still low).

Impact on home buyers

The biggest factor in the predicted 2017 slowdown are the tighter mortgage regulations that were introduced in 2016. "Tightened regulations are expected to reduce the number of first-time buyers who qualify for mortgage financing, particularly in pricier markets, where there is a severe shortage of lower-priced listings," explained Gregory Klump, chief economist for the Canadian Real Estate Association (CREA).

Another possible factor is the potential for mortgage rates to rise in 2017. While the increase is expected to be slow to moderate, this increase-due to increased capital cost requirements for lenders and the possibility of inflationary economic policy under President Donald Trump-will also reduce the number of home buyers in the Canadian marketplace. This combined with a nation-wide rebalancing of housing markets means that buyers will have more opportunity in most markets across Canada. Even in Ontario and B.C., where CREA has predicted that national sales will remain strong, sales will fall short of the record levels set in 2015 and 2016, due to deteriorating affordability, an ongoing shortage of single family home listings and tightened mortgage regulations.

Spring-time buying rush

Still, no one should be surprised if there's a spike in sales come the spring. "Historically, the spring market is the busiest house buying season and prices can spike as much as 10%," explained Laurin Jeffrey , real estate agent with Century 21 Regal Realty.

While a spring rush, combined with continued low inventory, could push prices up there are other factors that may remove demand pressures. For instance, qualifying for a mortgage based on higher, posted rates may knock a portion of buyers out of the market, or shift them to areas or housing types that aren't in such high demand. According to Genworth Canada, the largest private mortgage insurance provider, approximately one-third of first-time homebuyers would no longer qualify for their current homes if they were forced to re-qualify under these new mortgage rules.

Then there's the proposed changes on precisely who covers the losses of a mortgage default. Since the mid-1960s, when mortgage insurance was first introduced, any defaulted mortgage was covered by the insurance provider, such as Genworth Canada or the Canadian Mortgage and Housing Corporation. Problem is, over the years, lenders haven't always used mortgage loan insurance to cover high loan-t0-value mortgages (mortgages on homes with less than 20% down from the buyer). Lenders have also purchased this insurance to cover mortgages on homes worth more than $1-million (by law you're required to put down more than 20% on homes valued at $1-million or more) or for mortgages where the buyer's equity is greater than 20%. The lenders do this in order to remove the danger of a defaulted loan; in other words, they pass on the risk of these mortgages to the insurance provider, who is ultimately funded by the government (who gets much of their money from us, the taxpayers). Now, there's a 20+ page proposal to place at least a portion of the default risk and responsibility back on to the lenders' shoulders. If this proposal goes through, it would prompt even tighter mortgage qualifications by lenders, which would further erode the number of qualified buyers in the housing market.

As a result, those looking to get a mortgage can expect more due diligence from your lender, which could take more time and require you to submit more paperwork.
Documents required to get the best mortgage rates "
Impact on home sellers

All these mortgage regulation changes could mean a lot less demand in the housing market. In most markets in Canada, sellers may have to adjust to a slower market where multiple offers are no longer the norm. That means expecting your home to stay on the market for a little longer as buyers take time to shop around.

"When the market was hot, buyers were competing against everyone: investors, speculators, and foreign buyers," says Dinani. "But what we're seeing now is that the end-user buyer doesn't have that same competition. The investors and non-resident buyers have pulled out-waiting for more certainty in the market-and that's meant fewer buyers in the market and fewer sales."

Still, those selling a single family detached, semi-detached or row home in the Greater Toronto, Vancouver, Victoria or Montreal areas, don't need to worry. Even if prices have or do drop 10% or 15%, many of these homeowners are sitting on substantial equity," says Dinani. "When you communicate the reality of this, even with a market drop, you realize the impact of the substantial run-up that's taken place over the last few years."

Still, home sellers may need to adjust their pricing expectations, says Dinani. "The spring selling market will really set the tone for the next year," he says, "and a continued decline in transactions will mean sellers will have to either settle for a lower sale price or pull out of the market."

Top tips for real estate investors in 2017

Despite all the advice about not buying a residential property for income purposes, many still do. Rental markets are still tight in the hottest real estate markets, with vacancy rates still hovering in the mid-1% range. As such, buying property to rent out makes sense, as long as you have a large enough down payment to ensure that rent covers expenses.

For the best value, consider multi-unit rental properties-like duplexes, triplexes, and beyond. This type of rental stock is still far more favourable than single-unit rentals, such as condos, as you can spread out the risk of rental loss across multiple units. But it also means paying a premium on this type of income property. Not only do you compete against other investors, but also against families and first-time buyers who are trying to find a way into hot property markets.

Also, consider markets that are located near university or hospital hubs but away from larger city centres. Quite often, these smaller college towns offer steady tenant stock, but not much long-term price appreciation. Areas in Ontario include Guelph, Hamilton (although, this city may have peaked already), and Kingston are still good bets, while Abbotsford, Port Moody and Langley, in B.C. are good options. Just remember, as an investor, cash-flow must come first.

As in the past, anyone thinking of buying an investment property should first start with a financial plan and a budget. Then work the numbers. If you can't withstand a loss-say the roof collapses or you need to hire a lawyer to legally evict a tenant-then you shouldn't be buying an investment property.
Read more: Best Deals in Real Estate 2016 "
Ask your property or real estate question here "Read more from Romana King at Home Owner on Facebook "Read more: Best Places to Live 2016 "Read more: Six mistakes investors make when markets tank "
Read more: Four things to know about the market correction "

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Canadian real estate market outlook 2017 - MoneySense

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For homeowners the great, big, unanswered question is whether or not the Canadian real estate market will finally crash in 2017. Turns out, all reports and analysis lean towards a flattening out of property prices in most Canadian markets, with some areas of the country experiencing a decline in both sales activity and prices, as other areas continue to experience price gains, albeit at a much slower pace than we've seen in recent years.

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This article was written by the Globe and Mail. It talks about how US President Donald Trump will affect the Canadian housing market. Essentially, the article speaks about how Donald Trump will mainly effect the value of the Canadian dollar. For example, Trump's threats or tighter trade restrictions would push the US dollar up. As a result, for Canada we could see things such as the level of Canadian debt arising because of the decline of the Canadian dollar. To me this is alarming because I never thought Donald Trump would have such a big impact on Canada during his tenure as President.

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What is the "Trump risk" to Canada's economy and the lofty real estate markets in many big Canadian cities?

Royce Mendes, senior economist at Canadian Imperial Bank of Commerce, is one of many Bay Street players grappling with the question. Mr. Mendes recalls the uncertainty of U.S. election night, when he finally left CIBC's downtown office tower at 3 a.m. Financial markets have been weighing the impact of President Donald Trump's tweets and pronouncements ever since, he says.

The new U.S. administration's impact on the outlook for the Canadian economy is mixed: Alberta could receive a boost from Mr. Trump's stance in favour of pipelines, Mr. Mendes notes, but his protectionist impulses could put this country at a disadvantage.
Read more: A look inside Palm Beach, where wealthy Canadians are one degree of separation from Donald Trump Also: Donald Trump and his troubled Toronto tower For subscribers: Non-banks 'crippled' by Ottawa's changes to mortgage lending
"I don't think I've ever heard him say he would make Canada great again," Mr. Mendes told a recent gathering of Sotheby's International Realty Canada agents and clients.

The Bank of Canada, meanwhile, has its own aims: The central bank is warning Canadians that the housing market is a major risk, he points out, and policy makers would like to see the country's economy move away from debt-fuelled investment and real estate.

In 2015, housing accounted for one-fifth of Ontario's growth in gross domestic product and one-third of British Columbia's.

The economy hasn't been getting the help from exports that many economists expected to materialize with the decline of the Canadian dollar against the U.S. currency in the past couple of years, Mr. Mendes adds.

Even though the loonie has fallen, some other U.S. trading partners such as Brazil, Great Britain and Mexico, have seen steep depreciation in their own currencies, and they have been able to sell more to the United States as a result.

Mr. Mendes is forecasting that the dollar will fall to 72 cents (U.S.) by the third quarter from its recent level of about 77 cents.

Mr. Mendes acknowledges that it's difficult to forecast around "Trump risk" because of the contradictory signals coming out of the United States. But with threats of a border-tax adjustment and renegotiation of the North America free-trade agreement, there's a chance his 72-cent forecast will turn out to be too optimistic, he acknowledges.

Mr. Mendes figures that trade with Mexico and China will draw more of Mr. Trump's attention because of the U.S. trade deficits with those countries compared with Canada's more balanced trading relationship.

Some market watchers see it as a positive that Mr. Trump has revived plans for TransCanada Corp.'s Keystone XL Pipeline, which would run from Alberta's oil sands to Nebraska.

However, Mr. Trump's threats of tighter trade restrictions would push the U.S. dollar up.

"If he thickens borders in the United States, the U.S. dollar shoots up. He has to recognize that."

That in turn could do even more damage to the U.S. manufacturing sector, which has already been decimated by the strength of the U.S. dollar.

While speculation that the United States will cut taxes, boost spending and dismantle regulation has sent equity markets soaring to new records, Mr. Mendes says his forecast for U.S. economic growth moved up only by a barely perceptible amount.

For example, Mr. Trump is promising to bring back jobs to the United States but Mr. Mendes doubts that he will succeed.

"These policies sound great in theory but when we work them out, they don't actually translate into massive economic growth."

The United States central bank, the Federal Reserve, has already raised its key interest rate and forecasters expect more hikes. In Canada, many are expecting the central bank's next move will be down.

Mr. Mendes says rapidly rising rates would definitely be a risk to Canadian housing but he doesn't expect that to happen.

As for governments on this side of the border, they need the tax revenue generated by the housing market, so Mr. Mendes figures politicians will be careful not to tinker too much.

"When policy makers talk about cooling the housing market, they have to worry about cooling it too much."

Canada likely won't see higher short-term interest rates before 2018, Mr. Mendes says, and he is not alarmed by the overall indebtedness of the average Canadian.

Only a drastic hike in rates would cause severe pain, in his opinion.

A less dizzying climb in prices in the Toronto market would help, he adds, while markets in Calgary, St. John's and Vancouver have already cooled.

Mr. Mendes is not worried about the rapid rise in real estate prices in Toronto in the past couple of years because he says that employment has been strong in Ontario and lots of immigrants and migrants from Alberta have been settling in the Greater Toronto Area.

He adds that buyers who are looking for an increase in value from condo units should be cautious about purchasing now, but investors who simply want cash flow will find that this is a good time to be offering units for rent.

If fiscal easing in the United States drags up Canadian interest rates or the U.S. government takes a more aggressive trade stance, Mr. Mendes would be more pessimistic about the outlook for Canada.

"Those are macro-economic risks that would hurt the whole economy, not just housing."

In the market for single-family houses in the GTA, he still predicts price increases, but not at the same velocity as in recent years.

Mr. Mendes says Canadians are starting to take on too much debt but the level is still not as high as it was in the United States when their housing market slid into decline in 2008.

The Bank of Canada will be able to navigate the shifting landscape, he believes.

"I would put my faith in their getting it right."

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'Trump risk' hangs over Canadian real estate market

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What is the "Trump risk" to Canada's economy and the lofty real estate markets in many big Canadian cities? Royce Mendes, senior economist at Canadian Imperial Bank of Commerce, is one of many Bay Street players grappling with the question. Mr. Mendes recalls the uncertainty of U.S.

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This article speaks about RBC (Royal Bank of Canada) and how cooling measures could be a foot . According to RBC their policymakers could put in place some measures to cool down the Toronto housing market. I think that for banks this could be a very smart move. The Toronto housing market is heating up and with the rising numbers in the market, it could be beneficial to banks if they could somehow control that in some way.

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Royal Bank of Canada warned on Thursday that policymakers are more likely to introduce measures to cool the Toronto housing market after home sales hit a record high in 2016.

"The likelihood of policy intervention to address housing risks in Toronto is increasing," economists at Canada's biggest bank said in its January Canadian Housing Health Check.

RBC did not specify whether further moves would be introduced by the federal government, the provincial government in Ontario or Canada's financial regulator.

Canada's finance ministry last year implemented stricter rules for mortgage providers while the provincial government in British Columbia slapped a 15 percent tax on foreign buyers to help bring prices down in the sky-high Vancouver market and make prices more affordable for ordinary people.

Separately, Canada's federal housing agency on Thursday said that, for the second quarter in a row, overvaluation and price acceleration were causing stresses in the housing market.

The Canada Mortgage and Housing Corp (CMHC) said six cities showed strong signs of problematic conditions, including Vancouver and Toronto. That was the same number as in October, though Victoria's risk level rose, while Calgary's declined.

"We continue to detect strong evidence of problematic conditions in Canada," CMHC chief economist Bob Dugan said in a statement.

"Price acceleration in Vancouver, Victoria, Toronto and Hamilton indicates that home price growth may be driven by speculation as it is outpacing what economic fundamentals like migration, employment and income can support," he added.

The Vancouver housing market has slowed since the foreign tax was introduced although economists are divided about how much was due to the tax. Ontario has played down the chances of implementing a similar tax but has not entirely ruled it out.

RBC said in its report that prices have continued to accelerate in Toronto particularly for single-family detached homes, which are in short supply.

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Canada's biggest bank warns of possible cooling measures coming to Toronto housing market

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Royal Bank of Canada warned on Thursday that policymakers are more likely to introduce measures to cool the Toronto housing market after home sales hit a record high in 2016. "The likelihood of policy intervention to address housing risks in Toronto is increasing," economists at Canada's biggest bank said in its January Canadian Housing Health Check.

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The Globe and Mail worked together with Royal LePage to make a video about the Toronto and Vancouver housing markets. Similar to the previous video they predict that Toronto will zoom by Vancouver in terms of the hottest housing market in Canada. They forecast approximately a 10% increase in prices throughout the GTA. I think that is justifiable simply because Toronto is a growing area and the demand is there. Therefore, that does present an opportunity to increase prices.

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real; estate; royal; lepage; report; toronto; vancouver

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Toronto will outstrip Vancouver as Canada's hottest property market in 2017: Royal LePage CEO

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A new real estate report from Royal LePage analyzing trends in the last quarter of 2016 suggests that the GTA will become the hottest housing market in the country in 2017, surpassing Vancouver.

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This video is from 2016 and it is an interview with Preet Banerjee and he's predicting what direction the Canadian housing market will go in 2017. He predicts that the GTA will remain the strongest market. The second one is that Vancouver housing prices will continue to fall. And lastly, everywhere else will more than likely cool down. These predictions are very interesting to me because I do not know much about the housing market to begin with. Although I am not surprised that the GTA is a strong area because of its rising population.

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Canadians coast-to-coast love to talk about the cost of homes, and 2016 was a hot year for the housing market in many cities.

But experts say you shouldn't necessarily expect the same this upcoming year.

Here's what is likely to happen to the Canadian housing market in 2017.

1. Toronto will stay hot.

The GTA will be the strongest market in 2017, said James Laird, co-founder of RateHub, a website that compares mortgage rates. He attributes this to simple supply and demand. There aren't a lot of detached and semi-detached houses, he said, and lots of people want them, which will continue to push prices higher.

Sal Guatieri, senior economist at BMO Capital Research, think the Toronto market will cool "a little bit" but overall remain very strong in 2017. "We'll probably continue to see price increases, but not on the order of 20 per cent. More like the mid-single digits for next year in Toronto."

2. Vancouver could cool.

Here's where opinions disagree. Guatieri believes Vancouver prices will continue to fall in 2017, as they started to at the end of 2016, likely at least partly in response to the province's foreign buyer tax.

Paul Taylor, president and CEO of the Mortgage Professionals of Canada, isn't so sure. The issue for him, again, is supply. And demand means that prices could start to climb again, he said. "These are world-class cities. Vancouver is beautiful and Toronto is a financial hub, so in comparison to other global real estate markets that you put in the same category, it's actually still quite a long way upwards that those values could increase to even be comparable to those other cities.

3. Everywhere else will cool slightly or stay the same.

Taylor thinks recent changes to mortgage rules will end up cooling the housing market a little outside Toronto and Vancouver.

These changes, introduced in October and November, require homebuyers looking for an insured mortgage to pass a "stress test" and qualify for a mortgage rate at the five-year Bank of Canada posted rate - which is typically much higher than the rate offered by banks. Another change requires buyers to put a larger down payment on houses worth more than $500,000.

Taylor thinks this could reduce the purchasing power of first-time home buyers - and not just in the hot markets of Toronto and Vancouver.

"You're going to see price reductions in a lot of places where the economy is already quite weak comparatively," he said.

Laird is more optimistic. "Alberta housing will stabilize in 2017," he said, largely due to the price of oil slowly climbing back up and oil-related layoffs having worked their way through the market already.

Guatieri also thinks that most of Canada's housing market will be fine, with healthy steady growth and a modest increase in prices.

4. Breaking into the housing market will get even harder.

Those mortgage rule changes will result in first-time home buyers losing about 20 per cent of their purchasing power, said Taylor.

Guatieri puts the number closer to 10 to 14 per cent more income to keep a buyer's debt-service ratio at an appropriate level.

But whatever the number, the bottom line is this: first-time home buyers are going to have to come up with bigger down payments and qualify for higher-rate mortgages. This likely means they will have to buy cheaper houses, or just continue to rent.

"2017 is the most difficult year for a first-time home buyer in the last 10, easily," said Laird.

And it's just going to get harder as the year goes on, he thinks. "Mortgage rates will rise. We will finish 2017 with higher mortgage rates than we started 2017."

This is for two reasons:

The government reduced the number of mortgages that could be insured, said Laird, and lenders will want to compensate for the added risk by charging consumers a little more.

The second reason, he said, is Donald Trump.

5. Donald Trump will indirectly affect the Canadian housing market.

Yes, Donald Trump could be partly - if remotely - to blame for rising mortgage rates in Canada.

"Bond yields are pushing up from their rock-bottom lows," said Laird. "This was largely created by the Trump election and some of the policies that he has started to announce."

Higher bond yields mean higher borrowing costs for banks, said Guatieri, and banks are passing those costs on to the consumer. The "Trump Bump" means even higher mortgage rates for Canadians.

If you're looking to buy your first home in the next few months, you should get pre-approved for a mortgage now before rates go up, said Laird. "Anyone considering shopping in the springtime, in the next three or four months, they should get a pre-approval today because they can hold today's rates for four months."

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What the housing market could look like in 2017

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Canadians coast-to-coast love to talk about the cost of homes, and 2016 was a hot year for the housing market in many cities. But experts say you shouldn't necessarily expect the same this upcoming year. Here's what is likely to happen to the Canadian housing market in 2017.

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This video is regarding Canada's bank eyeing the Canadian housing market. According to OFSI, high household debts and surging home prices are raising the risk of greater loan losses for banks I think that this is a rising trend in Canada. Prices for houses are rising to high in my opinion. Which makes it a dangerous investment for both the banks and potential buyers. This video contains an interview with Jeremy Rudin with some of the information mentioned above.

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Welcome to my Padlet wall where I will be posting information about the Housing Market in Canada

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Jorden Wilkinson