Page 6 - Real Estate Now Sept-Oct 2021

which can be a help to first-time buyers. However, with so many other market factors at play, it can be difficult to
pinpoint the timeline of this desired outcome, or the precise effect on home prices.

“You really can’t tell the effects because it’s mixed in with so many variables, but if you believe this will have its desired
effect, then it should mean real estate is a little bit less valuable than it would have been had this policy not been put
into place,” said Laird.

While the stress test plays a role in the outcome of the housing market, it’s only one factor—pent-up demand from
households who wanted to change the type of real estate they owned during the pandemic have also had an impact,
for example. Laird also points to the return of immigration to Canada, which will bring more buyer demand to the
housing market.

“Going forward, yes, the stress test matters, but probably what matters more [is] whenever immigration opens up
again and there are new Canadians coming [and] adding demand. That’s extremely significant.” said Laird.

“If and when rates move up, and by how much, that’s more significant than this [change]. This is not nothing, but it’s
not the biggest factor that causes a hot or cold market,” he added.
If you’re looking for advice on the latest changes to the stress test, or want to understand more about the current
market, recruit the help of a REALTOR® for the most up-to-date information. g

6 | REAL ESTATE NOW | denise@BCislandhomes.ca