“If the Canadian dollar weakens we expect to see some improvement in the Ontario market; (the) Golden Horseshoe, let’s call it,” Bill Jandrisits, president & CEO of MCAN Mortgage Corporation told Business News Network. “Toronto is an expensive market (but) there are other forms of housing; condominiums, etc. that make it more affordabile.”
The condo market will continue to be the only realistic option for many first-time buyers as a result of increased land prices due to the Green Belt legislation that has led to a shortage of lots, according to Jandrisits.
Alberta, meanwhile, may continue to struggle along with sagging oil prices.
“The price of oil is presenting concerns for everybody and I think the reason for that is housing markets have been strongest in western Canada. Alberta has really been the driver of economic growth, but also housing growth … so you really start to be concerned about that,” Jandrisits told BNN. “I would tell you that it is a very resilient economy and Albertans are very good at rightsizing expectations. What we expected to see was a gradual slowing of the market.”
Further west, B.C. is expected to remain healthy, due in large part to affordability markets surrounding the ever-increasing Vancouver area.
“British Columbia really had a stall in about 2008/2009 just because housing prices really started to ramp up,” Jandrisits said. “It’s really come into its own in 2014; it’s healthier, it’s in balance so I think it will continue to do well.”
A weakened Canadian dollar will benefit buyers and brokers in one major area but another will have to grapple with a slowing market.