The latest updates in the Canadian real estate sector shed some light on what is really going on and if there is reason for optimism in the coming days, weeks, and months.
Based on a report from Teranet - National Bank of Canada, the housing prices are reaching a new record with an all-time high particularly in the month of August. Several variables are seen as the main factors for this kind of development and some key players are quite happy with the growth. An excerpt of this report in betterdwelling.com states:
The sudden acceleration of price growth came largely from smaller markets. Most cities saw price growth last month, with Vancouver being a notable exception. The C11, an index of Canada’s largest real estate markets reached a new all-time high last month. Prices are now at a new all-time high as a result, but some markets didn’t benefit from the increased enthusiasm. - betterdwelling.com
In the same light, Canadians are now starting to buy homes after the scare of the stress test in the previous months. A report from livabl.com shows some indications, which even support the growth in the real estate sector particularly in August:
Homebuying activity in Canada is on the rise as the market absorbs the impacts of tougher mortgage rules brought into effect in 2018. In August, Canadian home sales were up 5 percent annually and 1.4 percent compared to July, according to the Canadian Real Estate Association (CREA).
“The mortgage stress-test has eased marginally and that’s helped some potential homebuyers,” says Jason Stephen, CREA’s president, in a statement.
“But the extent to which they’re adjusting to it continues to vary by community and price segment,” Stephen continues. - livabl.com
The Canadian Real Estate Association (CREA) pointed out that the national August housing numbers show sustained improvement and this is a rosy figure that is felt across the country. According to the data, the sales are up for August and this is the sixth consecutive month.
As a consequence, the board is also prompted to improve its forecast, which would include Canada’s weakest market turnaround. Based on the data by zoocasa.com, the sales have skyrocketed up to 5% in the year with 44,437 transactions in total.
CREA anticipates these improvements will continue with steady sales growth throughout the remainder of this year and 2020; sales are to increase 5% and 7.5% over the next two years, respectively. That includes robust improvement in the beleaguered British Columbia market, where sales are to rise by a whopping 14.3% in 2020, as well as a 5% uptick in Alberta. The national average sale price is forecast to stabilize at 0.5% this year (compared to a previously predicted -0.6% decline), before increasing 2.1% to an average of $501,400 in 2020. - zoocasa.com
Final Thoughts
The housing market in Canada is making a comeback according to industry observers and financial experts. This is a remarkable indicator that despite the roller-coaster ride, the industry is up again and would hopefully stay that way until the end of the year.