This presentation will look at the latest real estate market trends for Canada. The areas of focus are mortgage, average housing prices, wages, inflation, job market and mortgage affordability.

1. REAL ESTATE MARKET –
CANADA – NOVEMBER
2016
BY: PAUL YOUNG, CPA, CGA
DATE: DECEMBER 17, 2016

2. This presentation will discuss real estate trends for Canada.

3. AGENDA
• Graph 1 - Housing Starts
• Graph 2 - Housing Prices / Average by Province
• Graph 3 – Wage Growth, CPI and Change in Average Housing Price
• Income Analysis / Mortgage value
• Job Market Analysis
• Summary

4. GRAPH 1 - HOUSING STARTS
Source – BMO. Scotiabank, CMHC, Stats Canada

5. GRAPH 2 - AVERAGE HOME PRICE BY PROVINCE

6. GRAPH 3 – WAGE GROWTH, INFLATION AND
HOUSING PRICE CHANGES
Source – CBC, CTV, Stats Canada and Canadian Real Estate association

7. INCOME AND HOUSING MORTGAGES
• Average weekly
earnings of non-farm
payroll employees
were $957 in
September, virtually
unchanged from the
previous month (-
0.1%) and up 0.4%
from 12 months earlier.
Average house
Price $481,991
(October 2016)
Average Income
$50K (September
2016)
• A key mortgage rate is on the way
up again at Toronto-Dominion
Bank.
• The bank said its five-year closed
mortgage special rate will increase
by 10 basis points to 2.94 per cent,
effective Thursday, matching a hike
last month by RBC. Source –
CBC.com
After tax income
per month would
be $2,500
Two income: 100K or
5,000/month (after tax income
Ratio: 38% of your after tax
income would cover the
mortgage
Source – CBC, CTV, CMHC, Stats Canada and mortgage calculator

8. JOB MARKET / NOVEMBER 2016
• Family income for house today is $100K+
“The country added a net total
of 11,000 jobs in the month,
but all of the gain was in part-
time work. Full-time
employment fell by 8,700
positions, while part-time jobs
grew by 19,400.
In fact, over the past year,
Canada has lost 30,500 full-
time jobs, while gaining
213,700 part-time jobs. That
likely helps to explain
why wages in Canada are
falling, when adjusted for
inflation.”
Source -
http://www.huffingtonpost.ca/2
016/12/02/unemployment-
canada-november-
2016_n_13369418.html

9. SUMMARY
• New Taxation comes effective January 1, 2017 – (Carbon Taxation)
• Economy will continue to grow slowly (2% or less in terms of GDP Growth)
• New mortgage rules (stress test) will impact new entrants to the real estate market
(millennials)
• Job churning is the new norm for job seekers
• Technology will drive business (Analytics, Cybersecurity, eCommerce, robotics,
drones, etc.)