Initially, the new mortgage stress test prompted buyers to purchase a home before the rules took effect last year. (Home sales surged in December 2017 and reached the highest level ever recorded). Once the regulations took effect, home sales fell dramatically in the first quarter of 2018. According to CREA, combined sales for spring 2018 fell to a nine-year low.(2) 
This year, for the first time since 2008, Canadians with fixed-rate mortgages may face higher rates when they renew a mature five-year term. While this won’t affect many Canadians, it’ll likely have a stronger impact in markets where affordability is low and household debt is high.
3 Reasons to ask us about our local housing market:
1. National housing data is measured differently
Each research firm has its own method of collecting and analyzing data. They may also rely on different indicators to reach conclusions and forecast trends. This can lead to confusion as to whether the market is doing great, holding steady or heading toward a slowdown.
2. National predictions should be taken with a grain of salt
Although national trends provide some insight into our local market, the specifics often vary.
3. All real estate is local
Markets can differ from neighbourhood to neighbourhood within the same city! The trends in our local market influence your home’s value, ideal list price and level of market competition. The more you know about the local market, the more confidence you’ll have in your decision to participate in the real estate process.
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Sources:
1. RBC Economic Research
2. CREA Quarterly Forecast
3. Moody's Analytics