19 April 2018

“It will transform real estate from one of the strongest drivers of economic growth to a modest drag,” – he adds.

As the stricter mortgage rules were implemented on January 1, housing sales have dropped in the first quarter on a year-over-year basis.

According to the economist, home sales in the hottest markets (Toronto and Vancouver) were “unusually depressed” in seasonally adjusted terms last month.

“Those who bet on hikes may argue that it’s just a temporary phase caused by the new rules, and as soon as the spring begins, the sales and prices will start rising again,” – he says.