The national avg home price in Canada is forecast ↑ 4.7% yearly to $720.2K in 2022.532.5K properties are forecast to trade hands in 2022, ↓ 20% yearly.

Annual price gains are forecast to be largest in Quebec and the Maritimes.
Also, national home sales are forecast to ↑ 2.3% to 520.1K units in 2023.

Canada’s market forecasts in 2022 and 2023

In Aug, national home sales ↓ 24.7% yearly, but just ↓ 1% MoM, which was the smallest decline after 6-mo.Along with steady MoM sales, demand/supply conditions were also more stable in many markets.
This could be an early sign that the sharp adjustment in Canadian housing markets is ending.

Is Canada's housing market adjustment ending?

BOC ↑ its key interest rate for the 5th time in 2022, to 3.25% in an attempt to curb inflation.
It ↑ 0.75% from the institution’s full percentage point hike in July to 2.5%.
COVID-19 outbreak, ongoing supply disruptions, and the war in Ukraine dampen growth and boost prices.
Also, the global inflation is rising, so central banks are responding by tightening their monetary policies.
BOC’s goal is to stabilize prices by reaching its 2% inflation target.

BOC’s goal is to stabilize prices

The avg cost of a detached home in Calgary was $634K in Aug, ↑ ~13 yearly.
 Meanwhile, semi-detached price levels are ↑ 10% yearly, with a benchmark price of $569,300.
The avg price for all homes was ↑ ~11% yearly.Condominium prices remain relatively stable MoM and remain ↑ >10% yearly.

Calgary house prices still up more than 11% from last year

Calgary home prices still up more than 11% from last year

Alberta will see a relatively small price decline this year, followed by small gains next year.The decline in the market is more of a recalibration.
Ontario led all of Canada with ↓ 15% in prices, and yet Alberta’s prices ~ ↓ 7%.

Alberta more cushioned as market correction happens

Experts see the 5-yr bond yield averaging 2.45% in 2022 and 2.3% in 2023
This can cause close to $19B of additional debt payments in 2022.
Out of the total household debt of $2.7T, around $650B or 24%, face an actual increase in interest payment in 2022.

Rate predictions in Canada

Rate Predictions in Canada

Some experts believe that by October the economy might be in a good position for the bank to take a pause.
But some of Canada's major banks are forecasting that the central bank will raise the key interest rate.They are forecasting a three-quarters of a percentage point raise, bringing it to 3.25%

Will Bank Of Canada raise the interest rate again?

Will Bank Of Canada Raise The Interest Rate Again?

The luxury market is still hot, particularly in Alberta with Calgary leading in sales growth.
The economic outlook for Calgary has a lot of optimism.
Calgary’s sales gains in the luxury residential resale market ↑ 40% yearly. 
Experts believe Calgary’s GDP will ↑ 6.6% in 2022, surpassing the Canadian avg of ~ 4.1%.
Single-family detached homes sales in the $1M-plus range in Calgary ↑ 36% yearly, while attached and condos ↑ 85% and ↑ 89%.

Strong luxury market in Calgary and Alberta

Experts believe while we have generally low housing prices across Canada, we could see a major hit to the supply.
There are opportunities available to buyers, but the quality of the inventory is still not up to par.
Sellers should work with an agent who can help them put together a strategy for bringing the home to market.
Buyers, should get "a strong support team" and stay on top of the latest benefits and changes to the economy.

12-month forecast for Canada

Experts say the mortgage stress test is a possible reason for the increased interest in variable mortgages since the qualifying rate is lower.
The test requires a homebuyer to show they can afford payments at a rate two percentage points higher than the negotiated interest rate.
 Or can manage the BoC’s current qualifying rate, whichever is higher.

Variable-rate mortgages growing in popularity despite BoC rate hikes

From a tax perspective, multiple homeownership is expensive due to higher costs on title transfers, capital gains and foreign ownership.
Canada, unlike the US, taxes individuals based on residency, not citizenship status. 
2nd homes and rental properties are subject to a capital gains tax on 50% of the gain or loss when sold.
Also,  provinces have land transfer taxes; in Ontario properties are taxed by a median rate of 1.5% of value when a title is changed. 
Foreign buyers pay additional taxes, compared to Canadian residents, like a withholding tax if they own a rental property in Canada.

Does It Pay to Own Multiple Homes in Canada?

The ultra-luxury housing market stays unaffected by rising interest rates and fluctuating demand.Instead,  the market has seen major price increases.
 Ultra-luxury properties are homes that cost $4M-plus.While the interest rate has recently been on the upswing, it's still at a historic low over the last decades.

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Canada’s market forecasts in 2022 and 2023

Is Canada's housing market adjustment ending?

BOC’s goal is to stabilize prices

Calgary home prices still up more than 11% from last year

Alberta more cushioned as market correction happens

Rate Predictions in Canada

Will Bank Of Canada Raise The Interest Rate Again?

Strong luxury market in Calgary and Alberta

12-month forecast for Canada

Variable-rate mortgages growing in popularity despite BoC rate hikes

Does It Pay to Own Multiple Homes in Canada?

Canada’s ultra-luxury home costs not going down

Localized Real Estate Videos to Win Leads using Calgary real estate Social Media Content

Sign Up to Add Your Branding to Social Media-Ready Real Estate Videos

Canada’s market forecasts in 2022 and 2023

Is Canada's housing market adjustment ending?

BOC’s goal is to stabilize prices

Calgary home prices still up more than 11% from last year

Alberta more cushioned as market correction happens

Rate Predictions in Canada

Will Bank Of Canada Raise The Interest Rate Again?

Strong luxury market in Calgary and Alberta

12-month forecast for Canada

Variable-rate mortgages growing in popularity despite BoC rate hikes

Does It Pay to Own Multiple Homes in Canada?

Canada’s ultra-luxury home costs not going down

Localized Real Estate Videos
to Win Leads using Calgary real estate Social Media Content

Sign Up to Add Your Branding to Social Media-Ready
Real Estate Videos