24 July 2019

There are also certain issues on the horizon, including B-20 rules, which keep affecting buyers negatively in the Greater Toronto and Hamilton Area, where the First-Time Home Buyer Incentive will be almost useless.

“One of the reason this program has been introduced is to help people purchase higher-density housing. Nevertheless, the program starting in September will only raise the demand for affordable condos and push prices higher, leading to bidding wars”, – warned Navarrette. “People will have to drive further to find a property that doesn’t exceed their budget”.

Another factor that could affect the national economy is the trade war between China and the United States.

“In our opinion, Canada’s economy will slow down slightly during the next few years”, – he noted. “We’re not heading towards the negative growth, but it will be moderate because of our trading partners. The U.S. has taken protectionist measures, which may slow down their economy, the global economy, and ours as well. It will influence consumer and business confidence, business investment and spending on large purchases”.

The forecast also says homeownership will go up between 2019 and 2021, although not all real estate types will show growth, restrained by tight lending conditions and a slowing economy. The First-Time Home Buyer Incentive will provide small growth, and the construction sector will show weak gains in 2021, followed by better results.