Mortgage lender sees positive outlook for housing

RBC has published its latest Economic Outlook in which it highlights the challenges that Canada faces, including those from other economies.

The bank’s economists have downgraded their forecast for growth for 2015 to 1.2% (from a June estimate of 1.8%). For 2016 they expect 2.2% (down from 2.6%). However, talk of recession is “misplaced,” the report says.

On household debt, chief economist Craig Wright said: “Along with an increase in spending, Canadians continued to take advantage of low borrowing costs during the first half of 2015, with household debt balances rising at the quickest pace in more than two years.

"That said, historically low interest rates and, to a lesser extent, sustained income gains have kept the costs to service these debt balances at a record low.”

For the housing market the mortgage lender is optimistic. Low interest rates continue to stimulate demand in 2015, despite oil price declines and a glut of condos in some areas.

The market is not performing well universally though and the report highlights Alberta and Saskatchewan’s falling sales.

Overall, though home resales at the national level are expected to rise by 5% in 2015, making it the second-highest level on record, with home prices to rise by 4.6% in 2015, little changed from 4.8% in 2014.

With interest rates expected to rise in 2016, RBC anticipates that there will be a slight easing in resale activity, slowing to 3.2%.
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Investment Hot Spots:
Saint Andrews, Springvale, Thorne, Wimborne, Saint-Constant

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?