raised the rate<\/a> this month for the first time in years, the BoC is likely to make more increases, Hogue says.<\/p>\nThe report anticipates that there will be five additional hikes, boosting the BoC\u2019s policy rate 150 basis points by mid-2023. Higher borrowing costs, in time, are expected to dampen homebuyer demand.<\/p>\n
New policy measures at the political level will also likely be a factor in play further into the future.<\/p>\n
\u201cThe likelihood of new housing policy measures targeting speculators, at the margin, could further cool demand,\u201d said Hogue. \u201cThe federal government is widely expected to introduce new housing initiatives to address housing affordability issues in its spring budget. The details (including timing) will be key to assess the market impact.\u201d<\/p>\n
Housing market \u2014 finally \u2014 sees more listings<\/h3>\n
New property listings hitting the market are on the rise, a welcome sign for hopeful purchasers.<\/p>\n
New homes listed for sale rose 24 per cent from January to February, a key that helped \u201cunlock some unmet demand in the market.\u201d New listings increased to historically high levels in areas within British Columbia, Alberta and Ontario.<\/p>\n
Hogue pointed out that the Omicron wave possibly held back sellers as COVID-19 restrictions came back into effect in late 2021. Having seen those same limitations start to be lifted last month, some home sellers are likely taking the plunge now.<\/p>\n
\u201cDespite their higher numbers in February, sellers continue to be in a widely favourable position with scarce inventories persisting across the country,\u201d said Hogue.<\/p>\n
While property resales grew 4.6 per cent monthly in February to 699,000 units, the boost in new listings didn\u2019t make much of a difference in prices as the national composite MLS Home Price Index increased the most on record, up 3.5 per cent in one month and 29.2 per cent compared to 2021.<\/p>\n
\u201cNonetheless, we see the arrival of more sellers on the market as a positive sign,\u201d said Hogue.<\/p>\n
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<\/a>Photo:\u00a0karamysh<\/a> \/ Adobe Stock<\/em><\/p>\n