The Bank of Canada announced Wednesday that it would hold off on raising interest rates for now, keeping its overnight rate at 0.25 per cent until at least March. While the question of will they or won’t they has been answered, we’re now left to determine how the central bank’s decision will influence the nation’s housing market in the weeks ahead.
Read about how aging in place is impacting housing supply, Ontario’s Housing Affordability Task Force recommendations, and calls to construct more rental housing in Livabl’s weekly roundup of Canadian housing news and trends.
Don’t expect home buying blitz after the Bank of Canada’s rate hike delay: Rock-bottom interest rates remain, and industry observers don’t expect to see real estate extend its record-setting run with a last-second spike in property sales. The Financial Post notes that most prospective buyers entered the market well in advance of potential rate increases, while historically low inventory means those who stayed on the sidelines are left with too little, too late.
Baby Boomers are straining housing supply by aging in place: Seniors have traditionally sold their family homes to either downsize or enter retirement communities. However, Baby Boomers — born between 1946 and 1964 — are refusing to sell, having either grown fond of their surroundings during the pandemic or increasingly wary of long-term care facilities. The National Post examines the impact aging in place is having on Canada’s housing market, and how it’s exacerbating supply issues during a time of historically low housing inventory.
Ontario’s Housing Affordability Task Force drums up 58 recommendations: Ontario’s nine-member Housing Affordability Task Force has made 58 recommendations to increase housing supply, outlining them in a 31-page report that will be released on Jan. 31. CBC News breaks down the recommendations, which include speeding up project approvals, waiving development fees for infill projects, and eliminating exclusionary zoning rules to “allow any type of residential housing up to four storeys and four units on a single residential lot.”
Canada desperately needs more rental housing to meet demand: With surging prices keeping homeownership out of reach, an increasing number of Canadians are renting. And while purpose-built rental housing is being constructed at the same rate as condominiums, topping 60,000 units per year, it’s not nearly enough to meet the demand, particularly from immigrants and young adults. The Globe and Mail editorial board digs into the issue and calls for more rental housing to make up for decades of neglect.
Home inspections becoming a thing of the past in Ontario: Unconditional offers have become so commonplace in Ontario’s red-hot housing market that only about 15 per cent of sales across the province include a home inspection. As a result, home inspectors are leaving the industry in droves due to declining business. CBC News reports on the plight of home inspectors, how provincial legislation could offer a solution, and the risks buyers face when they fail to have a proper home inspection before purchasing a property.
