Money P.E.I.'s hot real estate market expected to cool in 2018

12:22  10 january  2018
12:22  10 january  2018 Source:   CBC

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Real estate sales on P . E . I . will drop seven per cent in 2018 , according to a new prediction by the Canadian Real Estate Association (CREA), while prices will dip one per cent. How P . E . I .' s minimum wage stacks up. P . E . I .' s hot real estate market expected to cool in 2018 .

All of these things add up to a hot real estate market with no real cooling in sight anytime soon. And you'd better bet you're not going to be the only one making an offer on it. Overall, things are looking good for 2018 .

a close up of a stop sign: 'We had some extraordinarily strong activity in the first half of 2017,' says Gregory Klump with the Canadian Real Estate Association.© Provided by Canadian Broadcasting Corporation 'We had some extraordinarily strong activity in the first half of 2017,' says Gregory Klump with the Canadian Real Estate Association.

Real estate sales on P.E.I. will drop seven per cent in 2018, according to a new prediction by the Canadian Real Estate Association (CREA), while prices will dip one per cent.

Strong demand coupled with low supply drove up housing prices on P.E.I. in 2017, even after a record-setting year in 2016.

"It's really a story about what happened in 2017 — we had some extraordinarily strong activity in the first half of 2017 —we expect there'll be some headwinds to prevent that from occurring in 2018," said Gregory Klump, chief economist with CREA.

Lower sales will cost economy $1B:CREA

  Lower sales will cost economy $1B:CREA TORONTO - The Canadian Real Estate Association said Thursday its lower home sales forecast will cost the economy $1 billion next year — as the impact of tighter mortgage regulations that come into effect New Year's Day take a toll on the sector. CREA said in an updated projection Thursday the banking regulator's revised mortgage underwriting guidelines, which include a stress test for uninsured mortgages, will reduce sales activity across the country, particularly in and around Toronto and Vancouver.The association now forecasts a 5.3 per cent drop in national sales to 486,600 units next year.

The temperature may be frigid across much of the nation, but home prices are sizzling and sellers are in the hot seat. » Read More. New York City real estate market takes a tumble in the fourth quarter. 9:49 AM ET Wed, 3 Jan 2018 .

Futures. Video. Hot Topics. Dow 25,000. NEW M&A League Tables. Tax Law, Your Money & 2018 . Daily Booyah. Financial Advisor Center. Optimism is already running high for the 2018 real estate market . While nothing is etched in stone, expect a great deal of activity for buyers and sellers in a big

Klump expects the new mortgage stress test that came into effect Jan. 1 will make it more difficult for people to qualify for financing. He also predicts higher interest rates.

P.E.I.'s Real Estate Association agrees the market will cool.

'Little bit of a slowdown'

"We're just going to see a little bit of a slowdown — it's not 'the sky is falling,'" said association president Mary Jane Webster.

"Especially in Charlottetown, our inventory levels are a little lower than we would like to see, so because of that it's just going to naturally slow down," Webster said.

The positive effect is an increase in new housing construction, Webster noted.

Seven per cent fewer sales translates into 150 fewer sales expected in 2018.

Effects magnified

Because the Island has small numbers of home sales, the effects of the changes will be magnified by statistics.

Toronto, Vancouver home sales fall in 2017 as prices jump

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North Texas' hot housing market won't cool in 2018 , according to a new forecast. com says Dallas-Fort Worth' s housing prices have escalated told the James Gaines told 300-plus Dallas-Fort Worth real estate agents that they might expect a slowdown in the frenetic market we are experiencing.

"All it takes is a few sales this way or that to make big percentage changes," Klump pointed out. "When you've got lower levels of activity, smaller variations in sales have a bigger statistical impact."

There was an increase in home sales in December over November 2017, Klump said, likely because of the tighter mortgage regulations that came into effect Jan. 1.

$749,000 Toronto Real Estate Listing Looks Like It Came Out Of A Horror Movie .
With how expensive housing in Toronto is, $750,000 for a house downtown sounds pretty decent, right? Well, when they say something's too good to be true, it probably is.This two-bedroom row house might sound like a good deal based on location alone — it's near Trinity Bellwoods Park and many great amenities. Houses in the neighbourhood on average go for more than $1 million. This listing's pictures speak for themselves.It doesn't look bad on the outside. Nice and red.The inside tells a different story. It needs of a lot of love, to put it lightly.

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