Owning your own house is becoming a difficult task in Canada day by day. Predicting the affordability of your own home in 2017 is a difficult task because predictions don’t come out easily from real estate these days. Prices are predicted to increase in Vancouver and Toronto with both cities having mortgage to income ratios above the Canadian average in 2017. Montreal will occupy the third position while Winnipeg and Quebec are predicted to be the most affordable cities. On the whole, the housing prices will increase in 2017, with Toronto leading the way with less than 5 percent growth this year.

Home buyers in Vancouver, Toronto and overall GTA are paying more than buyers in other parts of the country. This is of the reasons behind the continuous change in prices of properties over the last few years across Canada.

According to a survey report by an Ottawa based Real Estate Association, home sales were down by 2.8% from April till May as per the seasonally adjusted criteria and CREA, which represents approximately 1 Lac realtors across Canada.

As we know that the size of an average home in Canada is bigger than most of the countries in the world. But with increasing people migrating towards Canada, the average home size is expected to decrease. With the high cost of moving and lack of affordable homes in the country sellers are spending more on the renovation of their home thereby persuading the people to consider the option of buying resale homes. While interest rates have stayed low and respondents don’t see any signs of a natural increase anytime soon, any jump could make housing even less affordable than it currently is and drive more significant changes in real estate markets. The sustained low interest rates may be lulling Canadians into a false sense of security, thus spurring them to increase their debt loads. In fact, if interest rates rose by only 1 percent, a significant number of Canadians may not be able to absorb the increase in their monthly payments. If this were to happen, the current affordability issue would be further compounded.

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