BREAKING Canada will cut its permanent immigration levels by at least 20 per cent
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
As rising interest rates weigh on housing affordability, a new report suggests some relief may be on the horizon.
The report by Desjardins on Canada's residential real estate outlook said Thursday housing affordability is set to improve in 2023, though to varying degrees across the country.
Provinces that experienced the largest gains in housing prices during the pandemic will see the sharpest corrections post-pandemic, including the Maritime provinces and areas surrounding Toronto, Vancouver and Montreal, the report said.
However, these regions aren't necessarily the ones that will see the greatest improvements in affordability, said Randall Bartlett, Desjardins' senior director of Canadian economics.
"In cities that saw the greatest erosion of affordability ... we think it's unlikely that they'll get back to those pre-pandemic levels over the next couple of years," Bartlett said.
According to the report, Edmonton, Calgary and Winnipeg will see the largest improvements in affordability.
And while cities like Edmonton and Calgary will return to pre-pandemic affordability levels by late 2024, Ontario won't come close.
According to the Desjardins Affordability Index, affordability in Ontario will return to the same level it was at in early 2021.
The Bank of Canada's interest rate hikes have taken a toll on the housing market, slowing the pace of home sales and sending prices tumbling.
Since March, the central bank has raised its key interest rate from 0.25 to 3.25 per cent, leading to higher borrowing costs for Canadians.
According to the Canadian Real Estate Association, the average price of a home sold in August was $637,673, down from $816,720 in February.
However, recent reports from the parliamentary budget officer and RBC show cheaper homes have not necessarily made it more affordable to buy a home.
The PBO's house price assessment published last month said the cost of the average house is 67 per cent higher than what the average household can afford and an RBC report said the median household would need to spend 60 per cent of its income on ownership costs.
With interest rates set to rise even higher, Bartlett said housing affordability will continue to deteriorate for another three to six months. Once interest rates stabilize, however, affordability will improve, he said.
The report said greater affordability will lead to a housing market rebound starting in 2024.
Desjardins is also forecasting the Canadian economy will enter a recession early next year. The report warned governments will need to "mitigate the impact of the economic slowdown on homebuilding activity."
"Efforts to boost supply must be maintained to accommodate Canada's fast-growing population without generating new froth," the report said.
This report by The Canadian Press was first published Oct. 6, 2022
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
McDonald鈥檚 worked Wednesday to reassure customers that its U.S. restaurants are safe as federal investigators tried to pinpoint the cause of a deadly E. coli outbreak linked to the fast-food giant's Quarter Pounder hamburgers.
Turkiye鈥檚 air force struck Kurdish militant targets in Iraq and Syria on Wednesday in apparent retaliation for an attack at a key state-run defence company that killed five people and wounded more than a dozen others.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.
Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.
A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.