{"id":9882,"date":"2018-07-23T10:10:39","date_gmt":"2018-07-23T17:10:39","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=9882"},"modified":"2018-07-20T07:51:55","modified_gmt":"2018-07-20T14:51:55","slug":"common-misconceptions-about-the-housing-market-in-2018","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/","title":{"rendered":"Common Misconceptions About the Housing Market in 2018"},"content":{"rendered":"<p style=\"text-align: justify;\">With all of the headlines about home sales and prices, speculation and foreign buyers, taxes and rent control, it can be hard to keep track of which housing metrics are worth paying attention to.<\/p>\n<p style=\"text-align: justify;\">Industry players often grumble that the media pays too much attention to flashy figures, without providing a broader context for what\u2019s happening in the market.<\/p>\n<p style=\"text-align: justify;\">With this in mind, Livabl spoke with several housing experts, to get their take on common misconceptions about the housing market in 2018. This is what they said.<\/p>\n<p style=\"text-align: justify;\"><strong>One month doesn\u2019t equal a trend<\/strong><\/p>\n<p style=\"text-align: justify;\">National home sales rose 4.1% month-over-month in June, prompting many industry watchers to wonder if the market had finally adjusted to the effects of the mortgage stress test.<\/p>\n<p style=\"text-align: justify;\">But it\u2019s still too soon to say, according to Canadian Real Estate Association (CREA) chief economist Gregory Klump.<\/p>\n<p style=\"text-align: justify;\">\u201cOne car doesn\u2019t make a parade,\u201d Klump told Livabl. \u201cThis increase is a welcome step in the right direction, but we can\u2019t know what will happen next month.\u201d<\/p>\n<p style=\"text-align: justify;\">Meanwhile, the Aggregate Composite MLS Housing Price Index was up 0.9% year-over-year in June, marking the 14th consecutive month of decelerating gains and the smallest increase since 2009.<\/p>\n<p style=\"text-align: justify;\">\u201cHome prices, while they\u2019re still increasing, are accelerating at a much slower rate,\u201d says Klump. \u201cThe price increases have been centred in the condo market, while the cost of single family homes has remained quite stable.\u201d<\/p>\n<p style=\"text-align: justify;\"><strong>Stop arguing about supply versus demand<\/strong><\/p>\n<p style=\"text-align: justify;\">Ryerson Centre for Urban Research and Land Development senior researcher Diana Petramala is sick of hearing people argue that either a lack of supply or a surplus of demand is leading to higher housing prices. It\u2019s the interaction between the two factors that matters, she says.<\/p>\n<p style=\"text-align: justify;\">\u201cPrices follow the sales-to-listings ratio in most housing markets quite closely,\u201d she tells Livabl. \u201cWhat ultimately matters is how supply responds to demand. You can have a drop in demand, but if it\u2019s accompanied by a bigger drop in supply, the outcome will still be higher prices. The market is quite efficient at adjusting to macro-economic factors, if left on its own.\u201d<\/p>\n<p style=\"text-align: justify;\">Some industry players maintain that 2017\u2019s red hot prices weren\u2019t caused by a lack of supply, since supply levels were largely in line with their long-run average. But Petramala says this argument doesn\u2019t hold up to scrutiny.<\/p>\n<p style=\"text-align: justify;\">\u201cYes, [it\u2019s true that supply was inline with the long-run average], but housing demand was stronger from increased global investment in housing and the big demographic push from Millennial [home buyers],\u201d she says. \u201cHowever, regulation and approval delays kept supply restrained at long-run averages. The result was sharply growing prices.\u201d<\/p>\n<p style=\"text-align: justify;\"><strong>There\u2019s still demand for low-rise homes<\/strong><\/p>\n<p style=\"text-align: justify;\">The condo market has consistently outperformed the low-rise market over the past few months, leading some to speculate that Canadians\u2019 appetite for detached homes may be weakening.<\/p>\n<p style=\"text-align: justify;\">But according to RE\/MAX INTEGRA Ontario-Atlantic Region executive VP Christopher Alexander, that\u2019s just not true.<\/p>\n<p style=\"text-align: justify;\">\u201cI don\u2019t think buyers ever weren\u2019t interested,\u201d he tells Livabl. \u201cConsumers were not confident because a lot of headlines they were reading shouted that prices were falling and sales were underperforming.\u201d<\/p>\n<p style=\"text-align: justify;\">After a new stress test was introduced in January, home buyers took some time to consider whether they wanted to re-enter the market, says Alexander.<\/p>\n<p style=\"text-align: justify;\">\u201cBefore those new rules came into place, people really wanted to buy, but afterwards they were cautious and wanted to see how things would play out,\u201d he explains.<\/p>\n<p style=\"text-align: justify;\">Now, with detached prices up in 75% of GTA neighbourhoods in June, he says that\u2019s about to change.<\/p>\n<p style=\"text-align: justify;\">\u201c[B]arring some unforeseen global event, I think the market is showing serious signs of a rebound,\u201d he shares. \u201cBased on June\u2019s numbers I think we already have rebounded, and heading into the fall and the rest of the year we could see heightened activity.\u201d<\/p>\n<p><a href=\"https:\/\/www.livabl.com\/2018\/07\/3-myths-2018-canadian-housing-market-according-experts.html\" target=\"_blank\" rel=\"noopener\">3 Myths About The 2018 Canadian Housing Market<\/a> by Sarah Niedoba | Livabl<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With all of the headlines about home sales and prices, speculation and foreign buyers, taxes and rent control, it can be hard to keep track of which housing metrics are &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/\">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":[13],"tags":[],"class_list":["post-9882","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Common Misconceptions About the Housing Market in 2018 &#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\/07\/common-misconceptions-about-the-housing-market-in-2018\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Common Misconceptions About the Housing Market in 2018 &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"With all of the headlines about home sales and prices, speculation and foreign buyers, taxes and rent control, it can be hard to keep track of which housing metrics are &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\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Common Misconceptions About the Housing Market in 2018\",\"datePublished\":\"2018-07-23T17:10:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/\"},\"wordCount\":657,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Real Estate\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/\",\"name\":\"Common Misconceptions About the Housing Market in 2018 &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2018-07-23T17:10:39+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/07\\\/common-misconceptions-about-the-housing-market-in-2018\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Common Misconceptions About the Housing Market in 2018\"}]},{\"@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":"Common Misconceptions About the Housing Market in 2018 &#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\/07\/common-misconceptions-about-the-housing-market-in-2018\/","twitter_card":"summary_large_image","twitter_title":"Common Misconceptions About the Housing Market in 2018 &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"With all of the headlines about home sales and prices, speculation and foreign buyers, taxes and rent control, it can be hard to keep track of which housing metrics are &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\/07\/common-misconceptions-about-the-housing-market-in-2018\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"Common Misconceptions About the Housing Market in 2018","datePublished":"2018-07-23T17:10:39+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/"},"wordCount":657,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Real Estate"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/","url":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/","name":"Common Misconceptions About the Housing Market in 2018 &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2018-07-23T17:10:39+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2018\/07\/common-misconceptions-about-the-housing-market-in-2018\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Common Misconceptions About the Housing Market in 2018"}]},{"@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\/9882","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=9882"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9882\/revisions"}],"predecessor-version":[{"id":9883,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9882\/revisions\/9883"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=9882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=9882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=9882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}