Is Now A Good Time To Invest In Real Estate In Canada?
We’re six months into the new year and the Canadian real estate market has shown some skyrocketing deals. “The property market was challenging previously, but it’s become even more competitive from the first few weeks of January,” says Davelle Morrison, a Toronto based realtor. Given such high demand for real estate in Canada and a great increase of buyers as well as sellers in the market, buying a house for sale in Canada could really be a jackpot decision. So, if you are contemplating investing in Canadian real estate at this time of the year, then you’re in for some great news!
Canadian real estate market at the moment:
Despite COVID, the market exploded last year after real estate was recognized as a necessary service, and people working from home rapidly seeked a more comfortable work space to cater to WFH needs. According to Morrison, the desire for greater room will continue to strengthen the market in 2021, even more so for sellers. In areas like Toronto and Vancouver, record high demand — notably for homes — and a scarcity of supply are driving prices sky-high.
Purchasing houses for sale in Canada:
House demand in big cities such as Toronto, Vancouver, and Montreal fell last year owing strict lockdown conditions. This housing market in Toronto, which fell 8.5 percent in October 2020, is slowly returning to pre-COVID levels. That means if you’re seeking to buy a house for sale in Canada, you might be able to get a good offer.
Facts and figures:
Although home sales are starting to decline from earlier this year’s highs, the Canadian Real Estate Association predicts that the number of transactions in 2021 will establish a new high. The National Association of Realtors predicts that the average home price will climb 19.3% this year to $677,775 and then rise by less than 1% in 2022 to $681,500.
Region wise real estate estimate:
Homes in Canada sold for an average of $688,208 in May, a 39 percent gain year over year and down from the all-time high of $716,828 in March. However, in recent months, housing prices in key Canadian markets have remained relatively steady or increased.
- The average sold price of a property in the Greater Toronto Area has risen to $1.10 million, surpassing March highs. View houses for sale in Toronto, Canada.
- Similarly, benchmark prices in Vancouver have risen to $1.172 million, up from $1.123 million in March.
- Home price trends in Edmonton’s and Calgary’s housing markets have likewise been constant or positive, with increases of 6% and 5%, respectively, for the quarter.
- B.C. is predicted to have the highest average home prices, with CREA forecasting $883,781 in 2021 and $896,304 in 2022.
- With an average price of $859,533 this year and $887,031 next year, Ontario will be right behind.
- Newfoundland and Labrador will have the most inexpensive housing, with homes selling for an average of $272,964 in 2021 and $279,937 in 2022.
This suggests that investing in a house for sale in these regions will not only prove inexpensive at the moment, but the resale value, should you choose to resell it, will be great too!
Buying for profitability?
If you’re looking to make a profit from real estate, consider multi-unit rental housing or commercial properties, particularly those with large parking lots or extra acreage. These types of investments can provide you with immediate income as well as long-term growth opportunities. For patient investors, this is a powerful combination. And, of course, when it comes to real estate investing in Canada or anywhere else, location is everything.
2022 Predictions: “Maybe next year?”
In the coming year, tighter monetary policy is projected to impair housing affordability. The Bank of Canada has previously hinted at a possible rate hike in 2022, as well as a slowing of its balance sheet buildup. This, combined with rising bond yields, has already resulted in higher mortgage rates. Fixed high-ratio mortgage rates have risen to around 2%, up from lows of 1.4 percent to 1.6 percent in the summer.
Since for the time being, variable mortgage rates have remained low and house prices affordable, it would be a great decision to buy now, instead of stalling it to the next year.
Don’t feel anxious!
Buying a home is a huge deal and quite stressful too, but you don’t have to be alone in this quest. Save Max can help you find the best houses for sale in your choice of neighbourhoods in Canada. View the finest houses for sale in Canada. Go ahead and choose the house of your dreams and invest in the finest houses for sale in Canada today, as the time has never been better!
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