Paul Martin's Business Update - March 19th, 2014

Paul Martin's Business Update - March 19th, 2014

The number of transactions is expected to decline and price increases will moderate as a result.

That’s the forecast for the provincial residential real estate re-sale market from the Canadian Real Estate Association. It says the number of homes moving in this market is likely going to change only marginally this year compared to 2013 – and that is down marginally – while next year will see a uptick of roughly the same size, putting us back where we were a year ago.

One of the reasons for the flattening out is Ottawa’s tightening of mortgage rules. They went into effect last year and people who already had pre-approved mortgages moved quickly to acquire a property before the new rules came into effect. The result was demand that was expected this year happened last year.

And we’re seeing a similar situation with new home construction. The value of residential building permits in January, for example, was less than half what it was last January as builders, who have scrambled to catch up to a growing population appear to have finally done that – caught up.

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