{"id":10994,"date":"2018-12-07T10:10:30","date_gmt":"2018-12-07T18:10:30","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=10994"},"modified":"2018-12-04T12:04:16","modified_gmt":"2018-12-04T20:04:16","slug":"concerns-to-take-off-canadian-housing-market-worry-list-for-2019","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/12\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\/","title":{"rendered":"Concerns to Take-Off Canadian Housing Market Worry List for 2019"},"content":{"rendered":"<p style=\"text-align: justify;\">It can seem like there are endless things to worry about when it comes to the Canadian housing market.<\/p>\n<p style=\"text-align: justify;\">Would-be buyers have to contend with headlines cautioning them about the deterioration of housing affordability, rising interest rates, and historically low rental vacancy rates.<\/p>\n<p style=\"text-align: justify;\">But not every problem is made equal, and some may have been blown out of proportion by the news cycle. Every once in a while, industry experts weigh in to let the public know which issues they should take seriously, and which they don\u2019t have to think about as much \u2014 at least for now.<\/p>\n<p style=\"text-align: justify;\">Here are three topics to take off your worry list for 2019.<\/p>\n<p style=\"text-align: justify;\"><strong>Household debt is high \u2013 but it\u2019s going down<\/strong><\/p>\n<p style=\"text-align: justify;\">There\u2019s been no shortage of worry about Canadians\u2019 high household debt levels, and what they could mean for the stability of the country\u2019s housing market. But according to experts, things are in a relatively stable place.<\/p>\n<p style=\"text-align: justify;\">In fact, ever since stricter mortgage qualification rules were introduced in January, mortgage debt levels have been on the decline. Mortgage borrowing fell by $3.6 billion in the second quarter of 2018, according to Statistics Canada.<\/p>\n<p style=\"text-align: justify;\">And, a new report from the Chartered Professional Accountants (CPA) of Canada found that Canadians\u2019 credit quality remains strong \u2014 while they still have high amounts of debt, they\u2019re good at paying it down on time.<\/p>\n<p style=\"text-align: justify;\">\u201cIn contrast to the situation a decade ago in the US\u2026the number of borrowers with high credit quality has risen from 66 percent in 2002 to 88 percent in 2017,\u201d reads the CPA Canada report. \u201cIn turn, the number of low-credit-quality buyers shrank from 17 percent to three percent over that period.\u201d<\/p>\n<p style=\"text-align: justify;\">That means that, while ideally debt levels will continue to fall in the new year, the stricter qualifying rules should keep the market in good shape for the foreseeable future.<\/p>\n<p style=\"text-align: justify;\">\u201cThe Canadian system seems likely to be ready for prospective challenges, even if the economy softens here or abroad,\u201d reads the report.<\/p>\n<p style=\"text-align: justify;\"><strong>Foreign buyers aren\u2019t as big a factor as you might think<\/strong><\/p>\n<p style=\"text-align: justify;\">With the introduction of foreign buyers\u2019 taxes in Toronto and Vancouver over the past two years, you\u2019d be forgiven for thinking that foreign investors were dominatingrushing into the Canadian housing market.<\/p>\n<p style=\"text-align: justify;\">But the reality is much less dramatic. Non-residents of Canada account for less than 5 percent of housing in the Greater Toronto and Vancouver Areas, according the Canada Mortgage and Housing Corporation (CMHC).<\/p>\n<p style=\"text-align: justify;\">\u201cThe phenomena of non-resident ownership is most pronounced for condo apartments,\u201d explained CMHC chief economist Bob Dugan earlier this year. \u201cBut what we\u2019re seeing is that the share of condos owned by non-residents remains low and stable.\u201d<\/p>\n<p style=\"text-align: justify;\">That doesn\u2019t mean foreign buyer taxes have no effect on the market \u2013 many experts believe that they have a psychological impact, causing foreign and domestic buyers to reconsider entering the market temporarily.<\/p>\n<p style=\"text-align: justify;\">But foreign buyers are unlikely to cause the Canadian housing market to deviate from its relatively balanced state any time soon.<\/p>\n<p style=\"text-align: justify;\"><strong>Dependence on alternative lenders is still under control<\/strong><\/p>\n<p style=\"text-align: justify;\">With stricter mortgage rules imposed on those seeking a mortgage from the big banks, more and more Canadians are seeking out alternative lenders.<\/p>\n<p style=\"text-align: justify;\">Private lenders accounted for 20 percent of mortgage refinancing deals in Toronto in the second quarter of 2018, up 67 percent from 2016, according to online brokerage Realosophy and real estate data provider Teranet.<\/p>\n<p style=\"text-align: justify;\">\u201cHomeowners struggling to make ends meet today need a plan that does not include turning to high interest private debt,\u201d writes John Pasalis, president of Realosophy, in the report. \u201cIn this late stage of Canada\u2019s housing and credit cycle where house prices are moderating and interest rates are rising it\u2019s not the time to be increasing your overall debt load \u2014 it\u2019s time to deleverage.\u201d<\/p>\n<p style=\"text-align: justify;\">At the same time, Pasalis acknowledges that the majority of Canadians are still turning to banks to secure their mortgages.<\/p>\n<p style=\"text-align: justify;\">And, now that the effects of the mortgage stress test have been absorbed by the market, it seems likely that the rate of private lending will ease in 2019.<\/p>\n<p><a href=\"https:\/\/www.livabl.com\/2018\/11\/3-concerns-canadian-housing-market-experts-say-arent-worth-worrying-yet.html\" target=\"_blank\" rel=\"noopener\">3 Concerns Canadian Housing Market Experts Say Aren&#8217;t Worth Worrying About &#8211; Yet<\/a> by Sarah Niedoba | Livabl<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It can seem like there are endless things to worry about when it comes to the Canadian housing market. Would-be buyers have to contend with headlines cautioning them about the &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/12\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-10994","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Concerns to Take-Off Canadian Housing Market Worry List for 2019 &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2018\/12\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Concerns to Take-Off Canadian Housing Market Worry List for 2019 &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"It can seem like there are endless things to worry about when it comes to the Canadian housing market. Would-be buyers have to contend with headlines cautioning them about the &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/12\\\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/12\\\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Concerns to Take-Off Canadian Housing Market Worry List for 2019\",\"datePublished\":\"2018-12-07T18:10:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/12\\\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\\\/\"},\"wordCount\":696,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Market Updates\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/12\\\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/12\\\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/12\\\/concerns-to-take-off-canadian-housing-market-worry-list-for-2019\\\/\",\"name\":\"Concerns to Take-Off Canadian Housing Market Worry List for 2019 &#8226; 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