Meanwhile, house prices are expected to rise 0.5 per cent in 2019 as sales increase 5.6 per cent, according to RBC Economics Research. Many people will be shut out of the housing market as a result, particularly first-time buyers, the report said. 'High hurdle' for first-time buyers"The bar will get even higher in 2019, as the Bank of Canada continues to hike rates. Montreal, Edmonton, Calgary and Ottawa will also see affordability slip this year as the cost of housing will rise relative to household incomes. The Bank of Canada has raised interest rates five times since July 2015 and RBC expects two more hikes this year.

Source: CBC News January 05, 2019 09:00 UTC