The Latest Updates In Canada’s Housing Market

Canada is home to one of the world’s hottest real estate markets, and the priciest of cities are now in recovery mode. What does this mean for Canadian citizens? Let’s look into events and factors that are influencing the current market.

Elections and the Fall Housing Market

The Canadian dream of homeownership is one of the main topics brought up in the 2019 federal election. Both Liberal and Conservative parties are promising to make homes more affordable to Canadians. Policymakers seek to boost the eligibility cap, which could lead to rising housing prices. The International Monetary Fund argues that there should be more focus on supply.

The Canadian Real Estate Association (CREA) reported that Canada’s housing market is rebounding well this fall in comparison to last year’s drop, except for British Columbia and the Prairies. The current rebound can be attributed to economic growth and substantial labor gains, with the help of lower mortgage rates. Whether it will continue to grow is uncertain, however.

Property Developers Boost Residential Construction

Property developers and other companies are responding to the strong demand in Canada’s housing industry. September had a strong outturn for new housing construction and a probable increase in sales.

New households created are boosting other companies in various locations. Businesses are experiencing a direct benefit – garage door Ottawa companies and other housing industries are reflecting the residential investment.

Immigrants Impact in the Real Estate Market

According to a poll by Royal LePage, Canadian immigrants make up for more than a fifth of the housing market. In addition to contributing to Canada’s economic and population growth, immigrants are fueling real estate investments.

Newcomers in Canada are eligible to enter when they have the skill set or capital to contribute to the economy. “Frankly (we) get to pick and choose the best and brightest from around the world to live here,” Phil Soper, president, and CEO of Royal LePage, said in an interview with CBC.

Buying activity rose 6.6% above the ten-year average, and condo sales in the third quarter went up 11.1% more compared to last year, as reported by the Toronto Real Estate Board.

Bottom Line

The influx of people from Canada and abroad are pushing the market up, as well as property developers increasing the number of residential homes. We are looking at a real comeback, and we hope it continues that way.