On November 22, the federal government unveiled a National Housing Strategy that aims to reduce homelessness and improve the availability and quality of housing for Canadians in need. The goals include investments in new affordable units, repairs to existing units, and protecting those who have already secured housing from losing an affordable place to live. The results of this work can't come soon enough for those of us who live in areas where traditional ideas of home price affordability were left by the wayside months – or years – ago.
The latest analysis from Canada Mortgage and Housing Corporation (CMHC) shows that housing markets remain highly vulnerable, with evidence of overvaluation and price acceleration. These concerns are largely concentrated in the Greater Vancouver and Greater Toronto regions, with Victoria and Hamilton respectively being heavily impacted by those larger urban centres. In Victoria, there have been moderate to high signs of overvaluation throughout 2017, which means that the levels of house prices are not fully supported by economic fundamentals such as income.
Two sources of funds will be available through the National Housing Strategy: the National Housing Co-Investment Fund, which will help to make homeownership more affordable for modest income earners, and the Canada Housing Benefit, which will provide affordability support directly to families and individuals in the private market but struggling to make ends meet. While there are not any details about these programs yet, they will start to address some of the challenges faced by people who live in unaffordable markets and want to buy a home of their own.
The housing forecast for BC expects prices to grow at a slower pace through 2018, with the market moving towards more balanced conditions. However, to put that in perspective, the percent the average home price in BC has gone up is in the double digits compared to a year earlier. We definitely can't count on wage increases to close the affordability gap, as the average pay for Canadians only increased 2.2% in 2017 and is projected to be 2.4% in 2018.
Although housing affordability remains a challenge, there are options available if you're looking to buy a home. Our expert team can help find a solution that is right for you. If you're ready to get started, contact us for a free consultation: call Toll-Free 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours. We can also arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.
