The temperature outside might be dropping, but the housing market across Canada is still hot, hot, hot!
From coast to coast, the real estate industry continues to set new records with quick inventory turnover and rising prices due to high demand that is fuelled, at least in part, by low interest rates.
But will this upward trend continue through winter? The data looks promising as we near the end of 2020 and look forward to what 2021 has in store.
What can we expect from the market this winter?
The upward trend is set to continue (and Canada is leading the way)
A report published by the Federal Reserve Bank of Dallas looked at the real estate markets across the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) and the results make for very interesting reading. They found that Canadian real estate prices had experienced the most significant jump, rising nearly 2.5% from the previous quarter.
Across the country, home valuations have increased, and sales have grown year-on-year. The most notable growth was in:
- Greater Toronto Area: $890,400 (+11.1%)
- Greater Vancouver Area: $1,038,700 (+5.3%)
- Ottawa: $517,800 (+19.9%)
- Greater Montreal Area: $408,200 (+16.4%)
- Halifax: $372,982 (+18.1%)
Inventory levels will remain at an all-time low. According to the Canadian Real Estate Association, inventory levels continue to remain at an all-time low. As of August, they estimated that it would take only 2.6 months to liquidate all the current listings as the current sales rate.
What factors make real estate investment in Ontario so attractive?
There are several growth factors that work in favour of the country’s real estate market, including:
- Interest rates that are the lowest they have ever been and this is likely to stay the same for the next few years,
- Low inventory and pent-up demand that continues to fuel growth,
- Property tax will remain the same for 2021, and
- Support from the Canadian government for the real estate industry.
Where should you buy property in Canada?
The Greater Toronto Area has the best long-term growth potential, and there are a number of exciting opportunities both for new homeowners and investors. Whether you are looking for a pre-construction condo in the Entertainment District, a spectacular penthouse with stunning views of Lake Ontario or a house to build a home for your family, it can help to speak to a wealth strategist. And for sellers, the next six months to a year are going to be big. If you’re looking at listing your home this is the most opportune time to plan to sell with 2021 shaping up to be a record year for sales and bidding wars. Nikki Hessami, with her years of experience in the Canadian real estate market and an uncompromising commitment to her clients, makes her the go-to person for real estate in Toronto.