The reaction of the real estate market will vary depending on the kinds of challenges each province faces this year due to unique economic situations prevailing in those provinces as a result of huge fall in gas prices.

Minimum down payment requirement of 10% for buying houses from $500,000 to $ 1,000,000 effective Feb 15, 2016 will also play its role. To what extent it may dampen the increase in housing prices in Ontario has to be seen.

If the Ontario manufacturing and exporting industries are able to reap the benefit of reduced gas prices and falling Canadian dollar along with the dose of investments by Federal government to be announced in Budget next month, it can create more jobs and income in Ontario. This may keep the enthusiasm of new buyers up and the prices roaring up. However, all of this is a very slow process and is also dependent on many other factors operating globally.

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