Canada’s real estate sector has witnessed considerable progress in recent months. The Trudeau Government has held out some hope on the horizon by way of long-term affordable housing programs and support for first-time home buyers. Additionally, the markets have recovered, particularly in the country’s largest cities such as Toronto and Vancouver since they have absorbed the impact of the mortgage stress test and other factors. This is already visible through increasing sales volumes in major Canadian housing markets and a revival in property prices as well.
The Canadian economy is once again being driven by growth in its housing markets and that is a really positive sign for the future. The western provinces are doing really well and can sustain the national housing market even if Toronto’s stats fluctuate every once in a while, according to reports.
Housing growth holds up Canadian economy once more
Sales of housing in Canada were positive overall with the nation’s western provinces showing sustained revival even though there was a slight fluctuation in Toronto. Sales figures of homes changed a little in October 2019 after 7 straight months of gains as per latest studies released by CREA (Canadian Real Estate Association). Toronto witnessed a 2.9% decline overall which is the largest reduction since the month of February, 2019. However, this is only a minor blip and follows several months of positive gains.
Vancouver and Calgary had sales figures increasing by 5.9% and 2.1% respectively. The Ottawa housing market grew moderately while Montreal remained on the flatter side. Residential housing sectors in Canada have witnessed steady recovery in 2019 since borrowing costs have come down and buyers have adjusted well to stringent mortgage regulations which were brought in at the beginning of last year. With the housing markets adjusting to overall taxation impact on foreign buyers, real estate activity has inched back again to surpass the average for 10 years. It is now steadily contributing towards recent economic growth.
What experts feel
The positive market results reinforce the fact that the Canadian housing sector has started doing well again as per experts. They feel that real estate is now successfully driving growth instead of hindering it. Benchmark prices have also recovered strongly throughout the nation, increasing by a decent 1.8% as compared to the same period last year with month-on-month gains of 0.6%.
Although Calgary, Vancouver and other western Canada cities have witnessed lower pricing than the year-ago period, central Canadian housing markets are witnessing a somewhat tighter scenario. Toronto has witnessed price growth of 5.6% on the back of sky-rocketing demand and economic growth while prices have increased by 7.5% in Montreal and 10.3% in Ottawa, the capital. The ratio of sales to new listings has gone up to 64% which indicates how housing markets are steadily shifting in favor of home sellers rather than being totally inclined towards home buyers. This has been confirmed by CREA and indicates fast growth and recovery of the Canadian housing market which is always good news from an economic perspective.