Interest Rate—The Bank of Canada has increased its key interest
rate three times within the last 12 months, and more hikes are
expected over the remainder of the year. Higher borrowing costs
have weighed on the real estate market.
Regulatory Changes—Stricter mortgage regulations, such as
homebuyer stress testing, will decrease the funds available to
would-be buyers, dampening demand for real estate services.
E-Commerce—E-commerce continues to expand rapidly in
Canada. While this is reducing demand for traditional retail
properties, it is lifting demand for warehouse and storage space.