The Globe and Mail reports in its Tuesday edition that Canadian house prices are expected to climb significantly in the second half of 2018. The Globe's Janet McFarland writes that a new forecast by Royal LePage predicts home prices will rise 4.5 per cent nationally by the fourth quarter of 2018 compared with the second quarter ended June 30, hitting a national aggregate price of $641,597 by the end of the year.
In the first half of the year, house prices rose just 2 per cent nationally on a year-over-year basis to $613,968.
Royal LePage chief executive officer Phil Soper said the spring market "never blossomed" but he expects the second half of the year to be stronger as buyers adjust to the new mortgage stress-test rule that took effect Jan. 1.
The test requires buyers to prove they could still afford their mortgages even if interest rates were to rise significantly beyond the rate they negotiated with their banks.
Mr. Soper said he has never seen a federal housing policy change that had as wide an impact on buyers in all markets across the country. However, he said buyers have begun to adjust to the new rules by shopping for a cheaper type of home, or looking to buy in less expensive neighbourhoods.
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