Real Estate World in 2019

08 January 2019
Paula Conrad

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There is a lot of talk about 2019 Real Estate market, most people predict drop in price, and I'm talking about public, not experts.

As I always tell my clients, Real Estate almost always goes up, that's why it's considered to be the best investment and that is why most successful billionaires made their fortunes in Real Estate. Having said that, experts in the industry predict a price hike range anywhere from 1.2% (RLP) to 1.7% (RE/MAX), so very modest increase indeed.

Royal LePage CEO Phil Soper commented that the national housing market is expected to remain in a "correctional cycle" that began 2018, with home prices appreciating at a "snail's pace.""Markets aren't perfect. They overshoot and then they must correct," he said in a statement.

The Royal LePage report stated that a number of factors including rising interest rates, global trade risks and the low price of Canadian crude are the reason behind the "tepid pace" of price growth. But the hope, that the prices will drop is not justified. Despite the interest rate hikes, and few more coming our way this year, there are still a lot of people trying to get into the housing market.

Demand isn't as strong as it was in the past but it is still very, very strong.
RE/MAX reports claim that housing markets across the country will stabilize. Christopher Alexander, executive vice-president and regional director of Re/Max of Ontario-Atlantic Canada stated that "Demand isn't as strong as it was in the past but it is still very, very strong.""The government has said it may not be as conservative with raising rates as they have been in the past. That's why there's uncertainty. People don't really know what to expect."Christopher Alexander also stated that "The threat of a bubble bursting isn't around the corner, and at the same time, there is going to be a little bit of an appreciation so people will get a return on their investment." "We're in healthy territory right now and home buyers and sellers can feel confident that the market shouldn't' go too drastically in either direction."

Rates are still great and doesn’t appear to be any pressure to raise them right now.
Rates are still great and doesn’t appear to be any pressure to raise them right now.   3.59% for CMHC deals on 5 year fixed.   3.89% on a 7 year is attractive.   Variable 3.15%
(rates info as of January 8th 2019, per Dan Simpson l Senior Mortgage Specialist, RBC)