13 Apr What’s the Current State of The Canadian Housing Market?
Perhaps somewhat surprisingly, Canada’s housing market has been quite buoyant throughout the COVID-19 pandemic, and there has been an increase in demand for buyers searching for larger, single-family homes in and around large urban centers. Hygiene, health, safety and privacy are naturally easier to control in an individual property; apartments and shared living presents far higher risks when thinking in terms of a global pandemic, and quarantine periods may be enforced for multiple apartments within larger complexes should one family (or individual) test positive for COVID-19.
While condos haven’t been quite so much in demand, the market for them has managed to remain relatively stable, and is predicted to pick up as we move out of lockdown restrictions and the population is vaccinated on a larger scale.
With the nature of the health crisis and constraints of lockdown periods, many more Canadian citizens are also looking to purchase second homes, such as cottages. However, this demand may well be temporary, and once (if!) the pandemic is over, fewer people may feel the need to invest in additional properties.
If you would like to purchase a second home, or indeed, first home, seize the bull by the horns and take advantage of the current housing market by arranging a consultation with an experienced mortgage broker.
What exactly is driving this growth?
Several factors are known to influence the real estate market, and some of the most notable are listed below:
Interest rates
Affecting the cost of borrowing, the higher interest rates are, the more you’ll be required to pay to your lender. However, when interest rates are low, more people are encouraged to buy property as buying power increases.
The job market
Job security and being able to earn a decent wage are important factors influencing the housing market, and when people can hold onto their jobs and earn enough to both pay their bills, and put some aside each month, they will be far more likely to want to spend money on buying a property. Job insecurity or poor wages, on the other hand, typically sees potential homebuyers reducing their outgoings and delaying their plans to buy.
With some sectors remaining stable throughout the pandemic, workers may find that their expenses have decreased, leading to them being able to put even more money aside to pay for a new home.
Demographics
The pandemic saw (and continues to see) immigration slowing considerably, and with migrant workers being partly responsible for the Canadian housing markets recent growth, this demographic has undoubtedly had an impact. That said, it seems as if several other factors, such as non-homeowners buying property, have compensated this apparent slowdown.
If you’re thinking that now is the right time to invest in a property, you’d be right, and with plenty of reputable mortgage brokers ready to help you step onto the property ladder, there’s nothing stopping you from making a sound investment for your future.