12 June 2018

“This decision cut the maximum possible mortgage by more than 7%”.

In addition to it, we can’t exclude the possibility of an unexpected significant adjustment in housing prices. Moreover, home prices nationwide have changed sharply (in both directions) across the country since 2003, marking a clear shift from the previous decades’ tendency.

“The US Reserve Bank of Dallas says housing prices in Canada fell by 5.72% from the second quarter of 2017, but people don’t pay enough attention to it, as prices rose by 4.45% from the previous year. Nevertheless, the decreases restrain demand, which supports lower prices”.

And although unemployment remains near record lows these days, it may change in the future.

“Yes, higher wages seem to be great news, but at the phase of full-employment, it speeds up inflation. As a result, all wages could be devaluing. It sounds illogical, as you earn more, but can buy less”, – Better Dwelling noted. “Full employment is usually below 6% in Canada, and we’re at 5.8% today. We may expect wages gains, stronger inflation, and/or higher employment. It all will lead to lower profitability for businesses, so they will have to review their efficiencies.”