Doriana Zohil-Morton, owner of MAC Real Estate Services Inc., says the latest statistics show that homes are more affordable than ever, with sales in B.C., Alberta, and Saskatchewan down 20 per cent below their 10-year average for the month. “The housing market is still adjusting to the many policy changes in recent years, such as the foreign tax and the banks’ stress test," Zohil-Morton reports. “Prices, sales and starts are likely to hold stable nationally in 2019 for detached homes, with condos not slowing at all.” In fact, condo units in cities like Vancouver are steadily increasing in price and continue to have multiple offers that set new and higher sale prices, says Zohil-Morton. “There is no sign of a slow- down, which is most challenging for first-time home buyers and uninformed transferees attempting to enter these markets.” Alberta's real estate market is taking a bit longer to bounce back. According to RBC's latest nationwide housing market analysis, resales in the province dropped to an 80-year low at the begin- ning of the year, with prices in Calgary and Edmonton down three to four per cent year over year. “Alberta's energy sector has been suffering for years and that continues to influence prices throughout the provinces," says Ash. "Edmonton hasn't been as badly hurt as Calgary because it's a government city that's home to a number of head offices for oil and gas companies and a lot of commercial projects. Calgary has not been as diverse, so its housing market is softening." CENTRAL VIEW Toronto is also cooling down. Higher interest rates, lower demand, and the introduction of the B-20 mortgage stress test have relaxed growth in the region. “The good news for Toronto is that the inventory stock isn't growing as much as it has in the past. And because fewer homes are coming on the market, it has muted what could have been a more negative situation," says Ash. RE/MAX reports that the current time on market for existing inventory is 5.7 months, which is similar to national averages. Nevertheless, Toronto was listed as the world's 12th most expen- sive housing market by CBRE Residential in its latest report, so while the market may be balancing, the city remains a costly choice for relocations. Elsewhere in the province, relatively lower prices in Ottawa are turning the capital into a more popular destination, and the same can be said for Montreal in neighbouring Quebec. “Relative affordability in [Montreal and Ottawa] has helped home buyers take [mortgage] stress tests in stride," reported RBC senior econo- mist Josh Nye in Maclean's magazine. He noted that resales were up by double digits from a year ago (in January) with “prices up six to seven per cent from a year earlier and showing no signs of slowing." In fact, one of the more positive stories to come out of Canada's real estate market of late is the rise of Montreal as a favoured destination. While the city has always enjoyed a certain level of popularity among businesses and residents alike, its attractive housing market has made it an even more viable alternative. “Montreal has been long overdue for a good, positive market," says Ash. "We don't have to go too far back when the average price in 2014 was around $300,000, and today we're running right around $350,000. That's a healthy appreciation and should serve as a confidence builder for transferred employees.” Montreal also remains one of the more affordable destinations compared to other urban markets. A review of the HPI for Greater Montreal shows that while housing prices continue to rise, it is at a slower pace. In the east, New Brunswick real estate markets have performed well above average, while Newfoundland has been hit hard in the resource sector, painting a far less rosy picture. Also worth noting is that the U.S. economy may impact Canada's housing market, with economists south of the border saying the current inverted bond market could be indicative of an incoming recession. While Canada has been insulated from its neighbour’s economic shifts in the past, it is possible a U.S. recession could sway Canadian housing markets in the future. “The silver lining here is if this inverted bond is any precursor of a recession south of the border, we Canadians will be in a better position economically, just as we were back in 2008/09," says Ash. It's a mixed bag for Canadian real estate, yet save for a few outliers, conditions are holding steady. Relocaters, however, need to do their research. Zohil-Morton stresses it always pays for both employers and assignees to measure their needs and expectations against the reality of their destination. The budget for one location may afford a very different lifestyle in another, she notes. "This is where educating the transferee in advance of agreeing to the relocation is critical,” says Zohil-Morton. “Companies have huge financial investments in their transferees and they need to under- stand the city’s or town’s market conditions. That means trans- ferees can't just show up in their relocating cities; they need to do their due diligence by visiting the destination and making sure it's liveable and manageable for both themselves and the company.” 130 Besserer Street, Ottawa • 1-800-267-1989 613 -232-2000 • www.les-suites.com • Steps from shops, dining, entertainment • Condominium-sized 1 &2 bedroom suites • Complete kitchen, ensuite laundry room • Free local calls • Free WiFi • Indoor pool The perfect solution for extended stays. 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