Is the Housing Market Turning a Corner?

Marci • August 15, 2018

While Vancouver area home sales are still posting year-over-year declines, signs are appearing in the Greater Toronto Area that the worst of the housing correction is now over.

Experts say that likely won’t be enough to stave off a slowdown in national GDP growth, however, which in part will be impacted by the housing market’s weak performance over the first half of the year.

Is the Housing Market Turning a Corner?

Following weak home sales activity for the first half of the year, recent data is suggesting the housing market may be adapting to new mortgage rules and higher rates and turning a corner for H2.

“Early data for the month of July reported this week was mixed, but overall suggest that the worst of the housing correction is in the rear-view mirror,” senior TD economist James Marple  wrote  in a research note.

GTA home sales were up 6.6% year-over-year in July, with the sales-to-new-listings ratio rising to 50%, up from a trough of 44 per cent in March. Prices are also up 3.1% from June.

“All told, there are still some soft spots on the landscape, and temporary factors appear likely to return in the third quarter (shutdowns in the Alberta oil patch),” he added. “Still, for the year as a whole, the Canadian economy looks to maintain above-trend growth.”

Last month TD economist Ksenia Bushmeneva also predicted a turnaround for the second half of 2018. “Historically, the impact of policy changes is swift but short-lived, and it seems that the housing market is once again finding its footing. We expect that resale activity hit its trough in Q2 and will begin to gradually recover thereafter,” Bushmeneva wrote.

Marple added that with inflation above 2% and unemployment “close to a historical nadir, the case for continued increases in interest rates remains solid.” OIS markets are currently 32% priced in for a rate hike at the BoC’s next meeting on September 5.

GVA, GTA Housing Slowdowns Affecting National Growth

Lower home sales in Canada’s two largest housing markets this year are causing a ripple effect throughout the Canadian economy, the Globe and Mail  reported.

Residential real estate activity accounts for roughly 7% of this country’s GDP, the article noted, and quoted economists who say a drop in resale activity is causing many to revise down growth forecasts.

National resale activity in the first half of 2018 fell 14% from 2017, while Greater Vancouver and the Greater Toronto Area saw drops of 25.5% and 27%, respectively. While activity in the GTA picked up in June and July, Vancouver activity is still down 30% from last year.

Although resale activity has less of an impact on GDP compared to new home construction, RBC senior economist Robert Hogue said it’s still enough to reduce the rate of GDP growth.

“That slowdown is having an effect,” Hogue noted in a research note. “It may not have the effect we might think intuitively, like it is going to take GDP [growth] down to negative. But not contributing to growth, I would say, is a pretty significant development.”

Hogue forecasts national GDP growth will slow to 1.9% in 2018 from 3% last year, and growth in Ontario to fall to 2% from 2.7% last year.

Vancouver Residents Continue to Blame Foreign Buyers for Housing Crisis

An overwhelming majority of Vancouver residents believe foreign buyers are responsible for the city’s housing crisis, despite studies showing that they play a relatively small role in house price appreciation.

A new poll from Insights West found that 90% of Metro Vancouverites believe the city is in the midst of a housing crisis, with 84% believing foreign homebuyers are responsible for the current situation.

Other factors residents cite include:

  • Population growth (80%)
  • Shadow flipping (76%)
  • Money laundering (73%)
  • City and municipal zoning bylaw (63%)
  • Immigration (58%)
  • Lack of available land due to geography (53%)
  • Interprovincial migration (46%)

“There is no doubt that Metro Vancouver residents believe that we are in a major crisis when it comes to housing, and the issue is dominating public opinion and the public agenda,” Insights West President Steve Mossop said in a release. “What is surprising though are the misconceptions that exist with respect to the culprits and causes of this crisis.”

 

This article was written by Steve Huebl and originally published on Canadian Mortgage Trends on August 8th 2018. 

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Bank of Canada Holds Rate at 2.25% — June 10, 2026

By Marci Deane • June 10, 2026
The Bank of Canada announced today that it is maintaining its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For Canadian homeowners, buyers, and anyone with a mortgage on the horizon — here's what you need to know.

First-Time Buyer? Here’s How to Tell If You’re Ready

By Marci Deane • June 3, 2026
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.

Home Reno Dreams? Let’s Talk Mortgage Financing

By Marci Deane • May 27, 2026
How to Use Your Mortgage to Finance Home Renovations Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability. Here are three mortgage-related strategies that can help: 1. Refinancing Your Mortgage If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations. Key benefits: You can access up to 80% of your home’s appraised value , assuming you qualify. It may be possible to lower your interest rate or reduce your monthly payments. Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals. 2. Home Equity Line of Credit (HELOC) If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing. Why consider a HELOC? You only pay interest on the amount you use. You can access funds as needed, which is ideal for staged or ongoing renovations. You maintain the terms of your existing mortgage if you don’t want to refinance. Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates. 3. Purchase Plus Improvements Mortgage If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage. How it works: The renovation funds are advanced based on a quote and are held in trust until the work is complete. The renovations must add value to the property and meet lender requirements. This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one. Final Thoughts Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt. The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you. 📞 Ready to renovate? Connect anytime to get started!