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February 2018 Newsletter
Market Outlook - Housing
- Canada’s housing market has reached a cooling point after a busy end to 2017
- Declines were generalized and consistent across the country. This gives us evidence that tighter mortgage qualifying rules for conventional mortgages has had a widespread impact.
- New listing in January dropped 21.6% in January to an 8 year low. This suggests supply restraint may have played a big part of the slowdown in January activity.
- A psychological effect has been at play. Many homebuyers rushed into the market before January 1st, 2018. Furthermore, sellers have feared buyer pullback post B-20 changes and have opted to “wait and see” before listing their homes.
- Prices have still decelerated overall on single-detached home as prices were up just 0.6% year over year in January. Condo prices were up by 19.9% year over year.
Market Outlook - Interest Rates
- Interest rates are projected to increase another 2 – 3 times in 2018. This is due to tight economic conditions and gradually rising inflation. These two criteria are expected to offset persistent NAFTA concerns.
- The next interest rate increase will come in the first half of 2018.
- 2019 will forecast a cooling of rate hikes as the Bank of Canada will pause to assess the impact of past rate hikes.
- 7%: Decrease in Super Bowl viewer’s, the lowest total since 2009. The tally was estimated at 103.4 million viewers.
- 697: The number of Canadian head offices that are located in Toronto. Montreal has 381, while Vancouver and Calgary have 239 and 209.
- 5: Canada’s passport is the 5th most powerful in the world, according to the Passport Index.
Matthew O'Neil - February 2018