{"id":9282,"date":"2018-06-03T10:10:06","date_gmt":"2018-06-03T17:10:06","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=9282"},"modified":"2018-06-01T09:33:19","modified_gmt":"2018-06-01T16:33:19","slug":"factors-that-are-weighing-the-canadian-housing-market-down","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/","title":{"rendered":"Factors That are Weighing the Canadian Housing Market Down"},"content":{"rendered":"<p style=\"text-align: justify;\">For the first quarter of 2018, industry watchers were predicting that the cooling seen in the housing market would start to reverse course by the spring. But so far that hasn\u2019t been the case \u2014 in April, national home sales and prices continued to fall.<\/p>\n<p style=\"text-align: justify;\">The primary reason that the market is taking so long to adjust? There are a few contenders, including the new mortgage stress test, the US economy, and a wave of Millennials who are waiting to make their home-buying dreams a reality.<\/p>\n<p style=\"text-align: justify;\">For a closer look at what\u2019s bogging down the Canadian housing market this month, BuzzBuzzNews has rounded up the latest expert commentary to keep you in the know.<\/p>\n<p style=\"text-align: justify;\"><strong>The stress test is still putting a wrench in the gears<\/strong><\/p>\n<p style=\"text-align: justify;\">This week, Canada\u2019s biggest banks reported their second quarter earnings, with CIBC experiencing a serious cut in its number of mortgage applications.<\/p>\n<p style=\"text-align: justify;\">According to CIBC Canadian retail banking head Christina Kramer, the bank expects the number of new mortgages it grants in the second half of the year to fall 50%.<\/p>\n<p style=\"text-align: justify;\">\u201cWe expect there to be an origination decline in the 50% range relative to the same period last year,\u201d she said, in a statement earlier this week. \u201cA year ago, two-thirds of our revenue would be related to our mortgage business and today that\u2019s about a quarter.\u201d<\/p>\n<p style=\"text-align: justify;\">Kramer attributed the predicted dip in applications to the new mortgage stress test that came into effect on January 1.<\/p>\n<p style=\"text-align: justify;\">What does this mean for the Canadian housing market? Potentially that home sales will continue to stay low, as the new stress test keeps would-be buyer from applying for mortgages.<\/p>\n<p style=\"text-align: justify;\"><strong>Higher bond yields could pose a problem<\/strong><\/p>\n<p style=\"text-align: justify;\">US bond yields were up last week, and according to one economist, it could be bad news for the Canadian housing market.<\/p>\n<p style=\"text-align: justify;\">\u201cThe magnetic pull higher from US yields is tightening financial conditions in Canada even without any change to the Bank of Canada\u2019s policy rate,\u201d wrote TD senior economist James Marple, in a recent note.<\/p>\n<p style=\"text-align: justify;\">A bond yield refers to the money that investors earn from holding bonds. They tend to have a parallel relationship to fixed mortgage rates \u2014 when yields are high, banks sometimes raise fixed mortgage rates as well.<\/p>\n<p style=\"text-align: justify;\">\u201cHigher yields will make their way to mortgage rates, worsening affordability in a housing market that is already stretched,\u201d writes Marple.<\/p>\n<p style=\"text-align: justify;\"><strong>But the Millennials are coming<\/strong><\/p>\n<p style=\"text-align: justify;\">Over a million GTA Millennials are currently living at home, contributing to the current low-sales environment.<\/p>\n<p style=\"text-align: justify;\">But that could change in the next few years. A new report from Ryerson University\u2019s Centre for Urban Research and Land Development has found that over the next 10 years, 700,000 Millennials will be looking to move into their own homes in the GTA. That could work out to 50,000 new Millennial households every year.<\/p>\n<p style=\"text-align: justify;\">\u201cThe needs and wants of Millennials are little different than generations that have come before them,\u201d reads the report. \u201cMany of them are entering a stage where they will prioritize space and affordability over amenities and access to transit\u2026In an unconstrained market, the homeownership rate for Millennials in the GTHA could rise from 40% in 2016 to 60% in 2026.\u201d<\/p>\n<p><a href=\"http:\/\/news.buzzbuzzhome.com\/2018\/05\/according-experts-3-factors-weighing-canadian-housing-market.html\" target=\"_blank\" rel=\"noopener\">According to Experts These 3 Factors are Weighing the Canadian Housing Market Down<\/a> by Sarah Niedoba | Buzz Buzz Home<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the first quarter of 2018, industry watchers were predicting that the cooling seen in the housing market would start to reverse course by the spring. But so far that &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/\">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-9282","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Factors That are Weighing the Canadian Housing Market Down &#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\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Factors That are Weighing the Canadian Housing Market Down &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"For the first quarter of 2018, industry watchers were predicting that the cooling seen in the housing market would start to reverse course by the spring. But so far that &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\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Factors That are Weighing the Canadian Housing Market Down\",\"datePublished\":\"2018-06-03T17:10:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/\"},\"wordCount\":551,\"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\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/\",\"name\":\"Factors That are Weighing the Canadian Housing Market Down &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2018-06-03T17:10:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/06\\\/factors-that-are-weighing-the-canadian-housing-market-down\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Factors That are Weighing the Canadian Housing Market Down\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Factors That are Weighing the Canadian Housing Market Down &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/","twitter_card":"summary_large_image","twitter_title":"Factors That are Weighing the Canadian Housing Market Down &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"For the first quarter of 2018, industry watchers were predicting that the cooling seen in the housing market would start to reverse course by the spring. But so far that &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"Factors That are Weighing the Canadian Housing Market Down","datePublished":"2018-06-03T17:10:06+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/"},"wordCount":551,"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\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/","url":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/","name":"Factors That are Weighing the Canadian Housing Market Down &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2018-06-03T17:10:06+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2018\/06\/factors-that-are-weighing-the-canadian-housing-market-down\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Factors That are Weighing the Canadian Housing Market Down"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=9282"}],"version-history":[{"count":2,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9282\/revisions"}],"predecessor-version":[{"id":9284,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9282\/revisions\/9284"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=9282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=9282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=9282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}