Nationally, the rise in property prices slowed in the first quarter of 2020 compared to the same period a year earlier, to stand at 2.7 percent
Property prices in Western Canada are expected to decline
Price increase in the Greater Toronto Area remains stable, supported by low inventory
A slowdown in real estate activity in Metro Vancouver triggered by policy changes
The Greater Montreal area continues to report property price growth on
TORONTO, April 4, 2019. – According to the Royal LePage Home Price Survey  released today, the Canadian real estate market has shown signs of slowing down in price growth compared to the same period Last year.
Canada went through the biggest real estate correction it has seen since the 2008 financial crisis. Markets showed signs of recovery late in the year, however, data for 2019 suggests that the market was out of breath again.
The Royal LePage National Home Price Summary, which draws on property price index data in 63 of the country’s largest real estate markets, showed that the price of a home in Canada has increased by 2.7 percent compared to the same quarter last year, to hit $ 621,575 in the first quarter of 2019, a figure well below the long-term curve of about 5 percent. Looking at the market by property type, we see that the median price for a two-story home has increased 2.6 percent year over year to climb to $ 729,553, while the median price of a single-story home was up 1.1 percent from the same period in 2018, to $ 513,497. Condominiums remain the fastest growing property type nationally, with the median price increasing 5.4 percent year over year to $ 447,260.
Heading into the second quarter, Royal LePage expects property prices to remain relatively stable in Canada through the spring of 2019, with aggregate property prices rising only 1.0 percent nationwide over the three next months. In the meantime, several major Canadian cities are showing clear signs of slowing down, while quarter-over-quarter price declines are anticipated for nearly half of the regions surveyed for Royal LePage’s quarterly forecast [2 ]. In particular, Royal LePage expects the price of properties in the Greater Vancouver area to drop 1.4 per cent in the next quarter. Prices are expected to rise the most in the spring of 2019 in Ottawa, with an expected increase of 2.8 percent to $ 482,459 in the second quarter.
“We expect the year to be gloomy for the Canadian residential real estate market in general, with the side effects of the 2018 market correction and weaker economic growth, dampening home price appreciation,” notes Phil Soper, President and CEO of Royal LePage. This environment will be balanced by lower interest rates for a longer period than expected. However, this situation has its good sides. This slowdown gives buyers, and especially first-time buyers, a chance to purchase property in our largest cities across the country. “
The global economy experienced a downturn at the start of the new year. Economic downturns in China and Germany, persistent trade disputes and sluggish growth indicators in the United States support a muted outlook internationally. The silver lining for the Canadian real estate market is the heightened possibility that increases interest rates will be put on ice for the foreseeable future.
“Canada is certainly affected by negative macroeconomic trends, yet full-time job creation in our country is very robust, and those jobs turn tenants into buyers,” said Soper. “The medium-term real estate forecast remains very positive. “
In the federal budget tabled by Finance Minister Bill Morneau in March, the Canadian government announced three new or improved measures to make housing more affordable. The First-Time Home Buyer Incentive is a $ 1.25 billion participating mortgage program in which the Canada Mortgage and Housing Corporation (CMHC) will co-invest up to five percent the purchase price of an existing house. In addition, for the first time in a decade, the Home Buyers’ Plan (HBP) Registered Retirement Savings Plan (HBP) withdrawal limit was increased. The increase from $ 25,000 to $ 35,000 is the largest since the program began in 1992. Finally, an additional $ 10 billion in funding over nine years has been allocated for the construction of rental housing.
“Like many government initiatives, the new housing programs have their supporters and their detractors,” Soper said. “Potential buyers and the hundreds of thousands of Canadians