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End-of-year stampede: Canadian homebuyers rushed in the market before new mortgage rule kicked in


Blog by Shaun Kimmins | January 16th, 2018


MONTHLY HOUSING MARKET UPDATE

January 15, 2018

End-of-year stampede: Canadian homebuyers rushed in the market before new mortgage rule kicked in

  •   Home resales in Canada surged to a new record high in December on a season- ally adjusted basis.

  •   It’s likely that many buyers rushed to get deals done before more stringent mortgage lending rules came into effect on January 1st.

  •   The month-over-month gain was broadly based across the country. The Fraser Valley, Edmonton, Calgary, Winnipeg, Hamilton, Toronto and Saint John led the way with outsized sales increases.

  •   Overall price pressures eased for an eighth-consecutive month in Canada, alt- hough this mostly reflected developments in the Toronto area. Prices accelerat- ed in BC markets.

  •   We expect resale activity in Canada to slow down in the near term as payback for transactions that were brought forward ahead of the new mortgage rule. Our outlook for 2018 calls for a second-consecutive modest annual decline in re- sales and sharp moderation in price appreciation. 

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