I provide you with Canada’s news headlines for real estate news for today.
Flat Canadian Real Estate Prices While Incomes Catch Up? Nope
According to Better Dwelling,
Canadian real estate prices made huge climbs, and experts are saying incomes will catch up. This week one of our founders was invited by a government organization to talk about the Future of Home Prices. In typical Better Dwelling style, he started with debunking a common statement, “home prices will stay flat, and incomes will catch up.” I’ve been tasked to run the numbers across Canada, to see if that statement is equally outlandish in other markets, and boy is it ever.
The detail is here.
Canada’s big housing markets in ‘Goldilocks moment’: Royal LePage
According to CBC News,
Prices in Canada’s five biggest housing markets are going up at a similar, healthy pace — the first time that has happened in six years, Royal LePage said Thursday in its latest national house price survey.
The firm said that in the third quarter home prices in the Greater Toronto Area, Greater Vancouver, Greater Montreal Area, Calgary and Ottawa all went up by between 1.5 and 3.5 per cent from the second quarter.
Royal LePage said those increases are indicative of a “much more balanced” Canadian residential real estate market.
The detail is here.
3 Reasons Canadian Mortgage Rates Will Never Hit 5%
According to Canadian Mortgage Trends,
Canadian regulators may soon force borrowers to qualify at interest rates two percentage points above the contract rate. With many posted mortgage rates now approaching and even surpassing 3.00% (depending on the term), this means borrowers will soon need to show they can afford payments based on rates of 5.00%+.
The justification is that regulators want Canadians to be prepared when interest rates rise, but that’s a hollow excuse. It’s a punitive macroprudential rule that is disconnected from reality.
Interest rates can only rise if inflation accelerates, but every force in the world is pushing in the other direction. We’re in an age of no inflation and it will completely change borrowing, lending and how the mortgage market works.
This article shows you three reasons that you will never have to pay 5.00% on a typical 5-year fixed mortgage, but why you could be paying more in other ways.
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Jethro Seymour, Toronto Real Estate Broker, Looking For Best Midtown Toronto Real Estate Listings? Contact Me!
Also published on Medium.