In the first quarter of 2018, real estate prices in Canada experienced a decline. This indicates that Canadians are not as confident about investing and purchasing properties as they have been previously.
In addition to this trend being seen across all areas of Canada, it has also been observed in some specific cities more than others. Cassidy Davey and Francis Lafleur {Cassidy Davey et Francis Lafleur} are responsible for Lafleur Davey, one of the best real estate agencies in Canada. They keep track of these trends and more and can answer any questions you may have!
Here are five trends you should know about in the Canadian real estate market.
- Re-evaluating property values: Overall, prices have declined in Canada. However, some cities are seeing more significant drops than others. For example, the average cost of a home in Calgary has dropped by almost three percent compared to last year, while Vancouver increasedby over six percent.
- Falling sales: With property prices coming down, Canadian homeowners are starting to see the benefits of this decline. Since January 2018, the number of homes sold in Canada has gone down by five percent compared to last year. This is a major shift from 2017, when there was an increase in home sales volume across all regions except Quebec and Atlantic Canada.
- Changes to mortgages: With the new mortgage rules that came into effect in January 2018, home buyers need to grasp better how much they can spend. These changes mean borrowers will need higher down payments and stricter income verification before being approved for a mortgage.
- Investing in real estate: Many people invest their money into properties beyond purchasing homes for personal use. However, this is not the only investment Canadians make. There was an increase of almost 30% regarding investments made by non-residents with Canadian property over the last year.
- Investing in commercial properties: The Canadian real estate market is not just about residential homes. Many Canadians are investing in commercial properties, and this trend has been increasing over the last several years.
The future of Real Estate:
The Canadian real estate market is becoming more and more unstable. As a result, it will become even harder for homebuyers to get mortgages and secure financing in the future. This could eventually lead to price stabilization across all regions, but Canadians should be prepared for changes when purchasing a property.
In conclusion, the Canadian real estate market is experiencing a decline in many areas. This affects home buyers, investors, and brokers alike, so all parties need to be aware of these changes throughout Canada.
