3 Things Impacting the Canadian Housing Market Right Now
Canadian economists point to three big factors that have impacted the housing market this year.
- Stock market – The weaker stock exchange could slow the housing market due to negative effects on people’s overall wealth. It limits people’s ability to borrow and therefore, purchase homes.
- Low key interest rate – While the Bank of Canada does not anticipate more cuts to the interest rate, the cuts so far have had a positive effect on housing market activity. It is likely the rates will not increase again anytime soon. The BOC plans three announcements regarding the interest rate this year still: September 9th, October 21st, and December 2nd
- Energy sector – In energy-sector provinces Alberta, Saskatchewan, Newfoundland and Labrador, low oil prices undercut the housing market. The unemployment rate in these provinces due to oil prices is related to the market as well. More unemployment means less of the population that can buy homes.
For the whole story, visit Buzz Buzz Home