The conversation continues with regards to the Stress Test. Find out below new data that explains the full extent of its impact on the housing market.
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We’ve summarized the latest findings, which look at the stress test’s impacts on home sales and prices over the past year, as well as the current state of consumer awareness.
TD Says 40,000 Buyers Sidelined by B-20
New research from TD Economics estimates that the B-20 regulation (stress test) resulted in 40,000 fewer home sales over the course of 2018, with “disproportionate impacts on the overvalued Toronto and Vancouver markets and on first-time homebuyers.”
The report’s authors note it also impacted the supply side of the equation, with fewer existing homes on the market and fewer new units in the pipeline, which has put more strain on “already-tight” rental supply as would-be buyers were forced to continue renting.
“For the most part, the B-20 rules have contributed to bringing down housing activity to a more sustainable level,” reads the report. “However, developments should be closely monitored. There is certainly scope to tweak the guidelines if circumstances change and/or housing markets undershoot expectations.”