The Canada Real Estate sector is going through a good phase and truly, what can be better news with Christmas on the horizon? The GDP numbers were released for the third quarter of 2019 and they have reflected healthy growth of the economy. It was seen that a single industry has contributed more than half of quarterly growth and this happens to be real estate (no prizes for guessing!).
The increasing gross domestic product or GDP and the contribution of real estate in this regard have to be considered. Constant price GDP helps in removing the impact of inflation and numbers can likewise be compared more accurately. Experts make use of 2012 dollars for the years they adjust to and that are what is being used today. For real estate, we will only look at the biggest and the more direct GDP contribution- which is real estate, rental and leasing or RERL. RERL is the contribution to the GDP that is made during managing, selling renting or buying real estate. To put it simply, it is the commission which is acquired while managing real estate transactions.
Key aspects worth noting in this regard
It was seen that the GDP for all the industries grew at 1.44%. The GDP of Canada is showing a healthy growth for all industries and the industries were calculated at $1.00 trillion after seasonal adjustments at the annual rate for the third quarter 2019, up by $4.47 billion or 0.22% from the second quarter. This represented an increase of $28.17 billion or 1.44% from the same quarter last year.
The GDP for real estate transactions grew by about 2.70% and real estate transaction revenues seemed to grow much faster than the other industries. RERL represented $252.28 billion in the third quarter, up to $2.30 billion or 0.92% from the previous quarter. This calculated to $6.62 billion or 2.70% higher than the same quarter last year. The quarterly growth was also four times higher than all the industries and the annual growth was over 80% higher. This is a stupendous amount of growth within a limited time frame.
At present, the real estate transaction revenue growth is about 51.53% and growth for RERL over the past year is equal to 23.51% of the entire industry growth figures. Real estate transactions represented a great amount of growth in Canada and since it has only got bigger over time. The Canadian economy is still performing well although the real estate space has cooled a little in comparison to its past performances. Nevertheless, it still reflects total growth stats and when other industries like construction and financing are added to the mix, the scenario looks quite promising indeed.