The Real Estate Investment Network suggests housing markets are falling deeper into a slump despite increasing property prices.
Well, this is an alarming situation keeping in mind that most of the investors are triggers by the high prices but with this information gaining more light, it is becoming increasingly difficult for them to judge the future of the real estate market.
This uncertainty is supposed to negatively impact the market, but contrary to beliefs, this is not the case but rather the boom keeps on going over the top and only time will tell whether this is a bubble that would burst or just an illusion created by the market conditions.
The Methodologies of the Research that Took Place:
These findings are based on many research methodologies including The Real Estate Investment Network’s Economic Turmoil Formula and Real Estate Cycle Scorecard. Both resources highlight rapidly evolving changes of the underpinning economic fundamentals affecting real estate markets, such as GDP, employment, and population. The report indicates the continued impact of COVID-19 on these driving indicators has moved most markets further into the slump phase.
The Real Estate Investment Network’s COVID-19 Special Edition: Real Estate Cycle Update produced real estate cycles for three provinces:
- British Columbia – Beginning of slump
- Alberta – Beginning to middle of a slump
- Ontario – Beginning of slump
As well as five major cities:
- Vancouver – Beginning of slump
- Calgary – Beginning to middle of a slump
- Edmonton – Beginning to middle of a slump
- Toronto – Beginning of slump
- Ottawa – Beginning of slump
While others suggest hot markets in major Canadian cities, The Real Estate Investment Network research shows these may all turn out to be just hype.
“At first glance, it might look like the data is pointing towards a market boom because, in many key cities, real estate values have been, and continue to, increase. But this is all smoke and no fire. This is is a common misconception since characteristics of the boom and slump phases of the real estate cycle sometimes overlap and can be confusing to many if not most people,”
explains Jennifer Hunt, Vice President Research,
The Real Estate Investment Network.
“When looking ahead, the signals indicate markets are further entrenched in the early phases of the slump, so homebuyers and investors are wise to proceed with caution.”
What is the Real Estate Investment Network
The Real Estate Investment Network is the sum of numerous parts. Founded in 1992, it has since been the most trusted, unbiased real estate investing resource for education, research, and investment strategies.
For over 28 years, The Real Estate Investment Network has been at the forefront to change the conversation about real estate investing. A vigorous combination of meticulous research and analysis, brass tack economic fundamentals, strategic investing systems, exceptional market specialists, and solid industry leaders all contribute to world-class, relevant education and development, access to all real estate investors.
I am not sure how are you going to take this research but one thing is for sure that there is some merit to it. Knowing full well the current state of the market and making decisions that might not be traditionally accepted in the current market situations.
But everything kept apart is something that is going to set a new trend in markets where things are not keeping up with tradition and are more determined by the prices of commodities.