Now that home prices have peaked, reports are coming that the federal government intends to introduce restrictions on its First-Time Homebuyers Incentive (FTHBI) program to cover their exposure.
Thursday’s federal budget outlined measures to address housing affordability, although it’s unlikely to assist first-time homebuyers, especially given the current market conditions.
The value of Canadian real estate increased again in February, with the average home price selling at $816,720. That figure is up 51% compared to pre-pandemic markets.
Borrowers’ confidence in variable/adjustable-rate mortgages will be a conversation they’ll likely have with their broker, as the Bank of Canada’s overnight target rate begins its climb upwards, maybe as early as this week.
As of December, The Canadian Real Estate Association’s House Price Index was up 26% year-over-year, setting a new record.
The federal government considers reforms to residential investment or commercial properties to curb house prices.
For the second year, and in the face of a continuous pandemic, Canada’s real estate market has continued to grow.
Home prices in Canada increased past 25% in November compared to November 2020. The record year-over-year high results from low supply and continuing low-interest rates.
Today the Bank of Canada held its last scheduled announcement of the year, suggesting no changes to its forecast that its policy rate will increase in the middle of 2022.
While markets are expecting the first Bank of Canada rate increase in early 2022, some financial experts think the unpredictability of the brand-new Omicron Covid-19 variant might delay early hikes.