{"id":8318,"date":"2019-05-05T22:14:14","date_gmt":"2019-05-05T22:14:14","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/far-less-homes-were-sold-last-year-due-to-b20\/"},"modified":"2023-10-24T04:06:38","modified_gmt":"2023-10-24T04:06:38","slug":"far-less-homes-were-sold-last-year-due-to-b20","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/news\/far-less-homes-were-sold-last-year-due-to-b20\/","title":{"rendered":"Far less homes were sold last year due to B-20"},"content":{"rendered":"<p>Initially meant as a strong policy intervention against red-hot home price growth in Canada\u2019s most in-demand markets, B-20 was responsible for around 40,000 fewer transactions across the country (on a year-over-year basis) during Q4 2018, according to Toronto-Dominion economists.<\/p>\n<p>In a client note last week, the bank said that the impact of the stress testing has been far more enduring and extensive than anticipated \u2013 echoing recent sentiments by Ontario Real Estate Association CEO Tim Hudak.<\/p>\n<p>Hudak stated that B-20 has had a market impact \u201cbeyond what many thought was the worst case,\u201d with resale activity declining by 11% annually in 2018, the first year of the policy\u2019s implementation.<\/p>\n<p>\u201cNot only are many people unable to become home owners at all; others can\u2019t upgrade as their families grow, which in turn means they aren\u2019t selling their starter homes to people trying to buy for the first time,\u201d Hudak wrote in a piece for <em>Financial Post.<\/em><\/p>\n<p>TD Bank economists <a class=\"wpil_keyword_link\" href=\"https:\/\/www.canadianrealestatemagazine.ca\/news\/condo-demand-slated-to-explode\/\"   title=\"Rishi Sondhi\" data-wpil-keyword-link=\"linked\">Rishi Sondhi<\/a>, Ksenia Bushmeneva, and Derek Burleton argued that immediately rescinding B-20 would noticeably increase Canadian home prices by around 6%, which will be on top of the bank\u2019s 4% growth forecast, by the end of next year.<\/p>\n<p>Considering the situation, the federal government should certainly begin looking at a more relaxed approach from here on.<\/p>\n<p>\u201cRight now it\u2019s a one-size-fits all type of policy, and borrowers differ in their ability to service their mortgage, and they\u2019re different in terms of their risks,\u201d Bushmeneva said in an interview with Bloomberg.<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Initially meant as a strong policy intervention against red-hot home price growth in Canada\u2019s most in-demand markets, B-20 was responsible for around 40,000 fewer transactions across the country (on a year-over-year basis) during Q4 2018, according to Toronto-Dominion economists. In a client note last week, the bank said that the impact of the stress testing [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":20649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8318"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8318"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8318\/revisions"}],"predecessor-version":[{"id":21879,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8318\/revisions\/21879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/20649"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}