The housing market is influenced by a variety of factors. Factors like regulations, demand and the economy have a huge impact on real estate markets, and buyers and sellers alike should take note of these changes to avoid and handle and real estate disputes. In Ontario, regulatory changes and local trends will have an impact on real estate in 2018.
One of the regulations continuing to impact real estate in Ontario is the foreign buyer tax. Real estate investors who live outside of Canada are driving up housing prices in large cities like Toronto and Vancouver. Housing prices and foreign buyer trends may be influenced by this tax.
New stress test rules will also have an impact on Canadian real estate in 2018. The rule, instituted by OSFI, is designed to make sure mortgage applicants are not borrowing more than they can afford to repay. The stress test is, in part, meant to prepare the market for the potential of rising interest rates. The Bank of Canada increased its benchmark interest rate twice in 2017, and investors believe there is a more than 50 percent chance of another increase early in 2018.
While the results of many of these rules remains to be seen, they will undoubtedly impact Ontario home buyers and sellers. It is a good idea for those involved in a real estate transaction to educate themselves in order to avoid any potential real estate disputes and prepare themselves should such disputes arise. Speaking with a lawyer early in the home buying or selling process is a key step people can make to protect their interests.
Source: CBC News, "Stress tests, foreign buyers and higher rates likely to impact housing market in 2018", Pete Evans, Jan. 2, 2018
No Comments
Leave a comment