21 March 2019

“First-time home buyer activity is expected to slow down until September 2019, as many potential millennial buyers are waiting for more information on the new measures and setting their budget”, –  noted Robert Hogue, senior economist at RBC Capital Markets. “It may restrain the market even further during that period.”

In addition to it, the new measures could make it more difficult for the central bank to analyze the real estate sector. There are already problems with determining the influence of federal mortgage regulations and higher interest rates on the housing market.

However, even if sales go down this spring and summer, Hogue predicts an activity increase right before the federal election, as Canadians will receive an access to the new measures.

“All postponed purchases will increase the activity this fall,” – Hogue added.