Interest rate increases at a reasonable schedule of four times a year would create a stable and more relaxed housing market over the next five years.
Current immigration policy is focused significantly on accepting new Canadians on the basis of their economic and social capital characteristics (i.e., education, French/English language skills, and previous Canadian work or study experience). However, the policy could be more clearly linked with national labour market demands, especially relating to construction trades, potentially addressing housing supply issues driven by skill shortages.
While the deployment of taxes such as the foreign buyer’s tax has been front and centre over the last few years as a tactic to calm Canada housing market prices, removing the exemption on capital gains for principal residences could have a greater impact on market disruption.
According to a Leger survey commissioned by RE/MAX Canada as part of the report:
Over the next five years, Canadians said taxation (50 per cent), rising interest rates (46 per cent), and the possibility of an economic recession (42 per cent) rank as their top three worries when it comes to buying a home.
Thinking ahead five years, 37 per cent of Canadians say their preferred community would be suburban, while 30 per cent want to live in an urban environment, and 27 per cent say rural.
61 per cent of Canadians agree that real estate is the best long-term investment they could make (which they don’t see changing over the next five-years), however, rising property-related taxes (64 per cent), rising interest rates (58 per cent) and a possible capital gains tax (55 per cent) are factors that would cause barriers or concerns when it comes to buying a home in that time frame.
Please don't hesitate to reach out to top West Vancouver Waterfront Realtor, Matt Gul with any of your questions regarding buying or listing your home and questions relating to Canada's current or future housing market.