Canadian home values fell last year for the first time since 1990. The value of residential real estate dropped by nearly $22.5 billion USD in the fourth quarter of 2018, reflecting the sharp economic slowdown the country faced at the end of the year. The housing market in Canada has suffered further due to stricter mortgage rules and five interest-rate hikes from the Bank of Canada since July 2017. Interest rate hikes are expected to continue, which will keep upward pressure on ownership costs in 2019. Other economic factors are likely contributing to the situation, such as the ebb of Chinese investors, which has created an effect on global real estate markets from New York to Sydney and has consequently spread to affect the Canadian market.
