The end of 2018 is here. It’s been a year of some uncertainty, slightly higher interest rates, and slowing down of real estate prices.
While there was some growth in property values in some markets, overall growth in the housing market halted this year, largely due to higher interest rates and tighter mortgage rules. Predicting home prices is always difficult, but the Canadian Real Estate Association does see home sales rebounding and housing prices moving up slightly over the next year.
The demand for homeownership remains very strong, as Canadians want to own a home of their own. Even with interest rates rising over the past year, buying a first home or moving to a second home is still affordable and makes financial sense for many. The interest rate from a historical view is still very reasonable.
The Canadian mortgage market has also seen a slight shift in 2018 with more alternative lenders and options. This has been great news for many borrowers who have experienced difficulties in getting a traditional mortgage and for those who didn’t think it was even possible.
This time of the year is, of course, more about reflection and family than about mortgages and real estate. It’s been our pleasure to provide you with up-to-date mortgage and real estate information that we hope helps you. We’re always here to answer any questions you might have and look forward to assist you, your family, and friends in 2019.
Wishing you the best this holiday season and a prosperous new year.