The slowing year-over-year home price growth observed across Canada during Q1 2019 will actually prove to be a golden opportunity for first-time home buyers, many of whom are labouring under strict federal mortgage qualification rules as well as multiple provincial-level pressures.
Royal LePage president and CEO Phil Soper assured that the situation offers a “silver lining” for domestic buyers.
“This slowdown gives buyers, and first-time buyers in particular, an opportunity to buy real estate in our country’s largest cities,” Soper said.
“We are expecting this to be a sluggish year overall in Canada’s residential real estate market, with the hangover from the 2018 market correction and weaker economic growth acting as a drag on home price appreciation, balanced by lower for longer interest rates.”
In the latest edition of its House Price Survey released earlier this week, Royal LePage stated that the average residential property price in Canada went up by just 2.7% annually during the quarter to reach $621,575.
The figure is considerably lower than what is considered the long-term norm of approximately 5%, and Royal LePage cautioned that this might herald a spring market with relatively static pricing. The national aggregate home price is predicted to go up by just 1.0% during the second quarter.
Coupled with an ongoing global economic downturn, the rest of 2019 will likely not bring with it stronger home price growth. Beyond the immediate horizon, however, things are looking much more inviting.
“Canada is certainly affected by negative global macroeconomic trends, yet full-time job creation in our country is very strong, and full-time employment turns renters into buyers,” Soper explained. “The medium-term outlook for housing remains very positive.”