NEW STRESS TEST REGULATIONS PROMPT CANADIAN HOMEBUYERS TO INCREASE BUDGETS, RE-EVALUATE HOME FEATURES OR DELAY THEIR PURCHASE. WHILE HOMEBUYERS ARE FEELING THE IMPACT OF REGULATORY CHANGES, THE SPRING MARKET FORECASTS BRIGHTER DAYS AHEAD.
A recent RE/MAX survey conducted by Leger found more than one in four Canadian homebuyers report feeling pinched by the stress test, which came into effect in January of this year. However, projections for the spring market show optimism with most markets expected to remain stable or improve.
Despite all of the factors involved, the spring market across most of the country is forecasted to strengthen as we head into the warmer months. Supply is still low in many markets, and while the prices may not reach the same levels as this time last year, we are expected to see continued healthy price appreciation from the earlier months of this year across many regions in the country.
Activity in Hamilton-Burlington was driven by first-time homebuyers, primarily single Millennials and young families.
Buyers looking to downsize have also contributed to some of the activity in the condominium market. Millennial demand and immigration growth have all contributed to a strong detached home market in January and February.