2016 Real Estate In Review
2016 was transformational when it comes to the real estate market both here in the nation’s capital and throughout Canada as a whole. The Canadian real estate story of 2016 is one of shifting policy and unprecedented investment trends. While the overall Canadian economy experienced a gentle decline in 2016, experts await the long term impact of changing energy prices, new foreign investment regulations and the infamous stress test on the Canadian real estate market. Read on for the most news-worthy real estate stories of 2016.
- The Stress Test: In October, potential homebuyers were shocked when the Liberal government implement a “stress test”. The introduction of this new regulatory barrier to purchasing a home requires that those applying for mortgage insurance must quality based on a five year fixed rate.
- Record Sales: The cumulative sales across Ottawa (and many other Canadian cities) throughout 2016 far surpassed annual records for home sales in previous years.
- Vancouver: Described as a hot and sizzling market, the Vancouver, British Columbia real estate bubble was the top news story of the year, with housing assessments rising by 40% per cent or more.
- Foreign Investment: Most of the action in Vancouver was attributed to the role of foreign buyers in the B.C. real estate market, leading the government to levy at 15% tax on foreign purchases on residential real estate, a move unprecedented in Canadian real estate history.
- Price Hikes: The rise in real estate prices and rental costs moved at a pace that Canadian incomes simply could not keep up with, leading to an increase in permanent renters (particularly millennial and seniors). The Canada Mortgage and Housing Corporation confirmed that purpose built rental units went up by 6.4 per cent, the highest increase in history.
The Canadian real estate market, from Ottawa to Toronto to Vancouver, made local and often international news throughout 2016. With many of the regulatory changes coming to fruition in late 2016, the real impact of these changes will be determined in the early months of 2017. With rule changes and prices rises, there will inevitably be those who benefit, but also those who face great challenges as a result.
To stay up to date on the impact of the real estate trends of 2016 as we move into 2017, contact our team at Performance Realty today. If you are interested in learning more about how to sell your home, our professional Realtors® offer a free, no obligation market evaluation of your current home. Our sales representatives are happy to help answer any questions you might have about the real estate market in Ottawa.