Over the years, it seems Canadians have grown to love single-family housing properties, as development prospects for single-family housing have been regarded as the “best” among major property types for three years now, according to The 2019 Emerging Trends in Real Estate report by professional services network PwC.
Poll respondents also pointed out, however, that affordability and tight supply remain the top issues for that particular home category.
Attempting to pin the down the root of these problems in specific cities, the study noted that rising interest rates, higher personal debt levels, and tougher stress tests on residential mortgages imposed by the Office of the Superintendent of Financial Institutions had significantly affected consumer affordability in Ontario and British Columbia, as well as in Alberta.
For British Columbia and Ontario, market shifts were linked to the speculation taxes imposed by the governments of both provinces. It was recorded that prices in these two markets suddenly dropped, followed by slow rebounds.
In the Greater Toronto Area, taxes had also slowed the market, but data showed it is starting to show signs of improvement. As a consequence, it is “expected that prices will continue to increase in response to continuing demand and lack of government action to sufficiently address supply,” according to the report.
Although considered a buyer’s market, most prices in Vancouver are too expensive for people to afford. Bucking that trend were Quebec, Maritimes,and Manitoba, where buyers enjoy greater affordability. Trends also show that pricing will remain steady.
Single-family housing makes up a quarter of residential inventory currently under construction in Canada, with total inventory under construction on par with ten years ago.
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