Sadly the promises of improving affordability predicted by both levels of government are yet to materialize. This, despite dramatic legislative changes at the provincial level (Greater Vancouver particularly affected with reduced sales). Federal changes have dealt a blow to first time buyers seeing a reduction in their levels of mortgage financing. Average prices of the smaller group of sales have dropped, but this is largely because the lesser number of say $3mm plus detached homes have shrunk and buyer confidence is waning. The core demand for residences in the $400k to $800k range by the 1st /2nd time buyers is strong and this price range is certainly not seeing downward correction; in fact quite the opposite. The only real help will come with new construction and that with increased densification (a dirty word for many).
I stand by my prediction in last month’s Update that sales will continue to be sluggish into the 1st half of 2017 and number of sales will only improve in the second half. Supply (listings) needs to come to grips with the fact that the rampant growth in prices is currently levelling off and only softening for those who discover that they need to sell to get on with their lives.