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TORONTO, ON, January, 2017—The new mortgage lending regulations put in place by the Department of Finance in October have significantly slowed the near-term outlook for housing values, according to new forecasts from Moody’s Analytics which based on the Brookfield RPS House Price Indices. House price growth in Canada was already likely to slow down, but the new rules increase the drag on housing demand and will lead to a pronounced slowdown in coming months, culminating in a mild decline for the national index and in a slower overall outlook than the September forecast?for Brookfield RPS house the coming five years, house prices in Vancouver will undergo a minor correction and will not completely recover back to their mid-2016 peak, dragged down by the transfer tax on foreign purchases as well as by the new regulations. House prices in Toronto will slow, though they will still rise faster than those in most other metro areas. Effects on other Canadian metro areas will range from significantly slower house price growth to a worse correction, in particular for Alberta and Saskatchewan metro areas such as Edmonton and Regina. There will also be significant downside risks given that it is not completely certain how many potential buyers will be pushed out of the market by the new stress tests, and this lack of clarity will also pull down asking prices by sellers. Read the full report here: /img/news/2017/01/Brookfield-Outlook_1116.pdf About the Brookfield RPS – Moody’s Analytics House Price Forecasts  The Brookfield RPS – Moody’s Analytics House Price Forecasts are based on fully specified regional econometric models that account for both housing supply-demand dynamics and long-term influences on house prices such as unemployment and changes in mortgage rates. Updated monthly and providing a 10-year forward-time horizon, the forecasts are available for the nation overall, its ten provinces and for 33 metropolitan areas, and cover three property style categories, comprising single-family detached, condominium apartments and aggregate, in a number of scenarios: a baseline house price scenario, reflecting the most likely outcome, and six alternative scenarios. About Brookfield RPS: Brookfield RPS is a leading Canadian provider of outsourced appraisal management, mortgage-related services and residential real estate data and analytics to financial institutions, real estate professionals and consumers. The company’s expertise in network management and real estate valuation, together with its innovative technologies and services, has established Brookfield RPS as the trusted source for residential real estate intelligence and analytics. Brookfield RPS is a division of Brookfield Asset Management Inc. (NYSE: BAM) (TSE: BAM.A). More information is available at www.brookfieldrps.com. About Moody’s Analytics: Moody’s Analytics helps capital markets and risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services, and research, including the proprietary analysis of Moody’s Investors Service, Moody’s Analytics integrates and customizes its offerings to address specific business challenges. Moody’s Analytics is a subsidiary of Moody’s Corporation (NYSE: MCO), which reported revenue of $3.5 billion in 2015, employs approximately 10,900 people worldwide and maintains a presence in 36 countries. Further information is available at www.moodysanalytics.com. For Media Inquiries: Yvonne von Jena Director, Innovation & Marketing Brookfield RPS (416) 386-4339 yvonne.vonjena@brookfieldrps.com  Katerina Soumilova Assistant Vice President, Communications Strategist Moody’s Analytics (212) 553-1177 katerina.soumilova@moodys.com

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Yvonne von Jena
Head of Innovation & Marketing
(416) 386-4339

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