While Canada’s housing market often feels insulated, global events still influence mortgage rates, buyer sentiment, and overall market health.

💰 U.S. Federal Reserve Decisions
The Bank of Canada often reacts to movements from the U.S. Federal Reserve. When the Fed raises or lowers interest rates, it impacts currency values and borrowing costs north of the border. Recently, U.S. rate hikes led the Bank of Canada to follow suit, tightening borrowing conditions for Canadian buyers.

🌾 Immigration & Housing Demand
Canada’s high immigration targets — set at 500,000 new permanent residents annually — are directly impacting housing demand. More newcomers mean increased competition for homes, especially in urban centers like Toronto, Vancouver, and Calgary.

📊 Global Supply Chains & Construction
Supply chain disruptions from international events have affected building materials, delaying new housing developments. As costs fluctuate, developers have slowed down construction in certain regions, further limiting supply.

Expert Insight:
“Immigration continues to be the primary driver of Canada’s housing demand, but without increased supply, affordability remains a challenge,” warns Benjamin Tal, Deputy Chief Economist at CIBC.