Canada is a country that is known to consistently have a great housing market. Their prices are always on the incline, and they’ve not had any dilemmas regarding their housing economy. With the emergence of the pandemic, housing in Canada might change for the better, or for the worse.
Real Estate During the Pandemic
With the rise in the coronavirus pandemic, people have stopped looking for new homes in ThenCanada. Fewer and fewer homes and spaces are being sold day by day. Rather than risk moving into a new place, Canada’s residents are staying put until they can safely move. Business owners are no longer buying or renting work spaces either. With the stay at home order, there is no need to have a work space they can’t use. Nevertheless, though fewer people are buying houses in Canada, the prices of houses are still increasing. The cost of resales have surged all across the country.
The Cost of Canada Real Estate
On average, the cost of houses in Canada is about 500,000 canadian dollars. The cost of each home is based on region. Houses in big cities like Ottawa and Toronto are meant to be on the higher end of housing costs. Canada real estate prices are on the rise to make up for limited sales. Canada is lucky in that it does not suffer from the same housing crisis as the United States, and other parts of the world in 2008. They’ve stayed secure in their prices and economy, and though the pandemic has affected them, there will be few repercussions when the pandemic ends.
Canada’s Best Places for Real Estate
Investing in Canada real estate is easy and simple. There are plenty of great regions to buy homes to live in, rent out, or make a vacation home. The best places for Canada real estate are located in the province of Ontario. Places like Peterborough and Kawarthas have saw significant increase in the housing market over 2019. These houses will spawn a profit, and they are in locations that are affordable and central to Canada. Ontario is a great province because it hosts the country’s capital city, Ottawa, and it borders the great lakes and the United States.
The Housing Market
The Coronavirus has certainly shifted Canada’s housing market, but not in enough of a way to make a difference. Homeowners in Canada are beginning to worry that their equity and assets are going to depreciate, but as of yet, Canada’s economy is still intact. There is worry across the country that the housing prices will fall. Then again, there are others who hope the prices fall– they’ve been consistent for so long– so they can afford to buy a home in Canada. Either way, someone will benefit from the rise or decline of the housing market due to coronavirus.
Canada is a country full of kindness is beautiful houses. The time to buy a house is not now. The prices of homes are increasing, but they could soon drop. The pandemic has changed things all over the world. Canada real estate is no different.
Published By Harry Miller
Pent-up pandemic demand lifts real estate sales to new high – BlackburnNews.com
Pent-up pandemic demand fuels real estate rebound
July 3, 2020 2:12pm
The pandemic-depressed Sarnia-Lambton real estate market rebounded in June.
Sales hit an all-time monthly high of $80 million, $15 million more than June of last year.
The previous record for monthly sales was $71 million, set in May 2019.
Real Estate Board President Donna Mathewson said volumes were down in March, April and May as agents only processed essential sales due to COVID-19 restrictions.
“In June, people felt more comfortable both listing their houses, and having buyers go out to view houses and purchase houses,” said Mathewson. “So, what we’ve seen is basically a pent-up demand that released in June. Hence the numbers of us reaching over $80 million.”
Mathewson said even though sales were record-setting in June, year-to-date they’re still down 13 per cent.
“We’re still in a high demand, low supply situation, we’ve been in that for over four years now and we don’t see that changing in the short term. Nobody has a crystal ball to know what will happen. If we do have another bout of COVID, but for right now we feel that our market is going to stay strong, just as it was in early spring.”
Mathewson said the average sale price was $408,317 in June.
“We had 24 listings that sold over $600,000. We don’t normally have that many sales in one single month that are over that amount, so because it’s just a mathematical equation, it’s an average, it really did push that average sale price up this month.”
The average sale price year-to-date is nearly $372,000, up 12 per cent.
RE/MAX Canada | Why Have Toronto Real Estate Prices Not Crashed? – RE/MAX News
In only a few short months, the COVID-19 pandemic decimated the global economy and permanently altered our lives. When the world rang in a new decade, nobody could have envisioned a virus outbreak and the resulting “new normal” for consumers, businesses and governments for the years to come. Some experts forecast that it could take years before we return to any semblance of normalcy, whether in the way we interact with each other or how financial markets function.
Since the public health crisis has affected every facet of the economy worldwide, all eyes have been on the red-hot Canadian real estate market. Closer to home, buyers and owners alike are waiting to see if Toronto will finally witness a drop in condominium and house prices. While it’s difficult to project long-term trends, recent figures indicate real estate Toronto prices are far from crashing.
Did April Showers Bring May Flowers?
In April, the economic fallout of COVID-19 and the many social distancing guidelines triggered a deep freeze in the Toronto regional real estate market. A month later, there was an unexpected rebound.
According to May figures released by the Toronto Regional Real Estate Board (TRREB), home prices in Toronto and across the GTA were up 3 per cent year-over-year, to $863,599. In the 416 area, detached houses climbed 2.7 per cent and condos picked up 1.8 per cent. However, fewer transactions are taking place, with 4,606 properties changing hands in May – a 53.7-per-cent decline year-over-year but up 55.2 per cent compared to April 2020.
Overall, the real estate market has held steady throughout the financial crisis. While transactions have slumped since the coronavirus pandemic crippled the Canadian economy, average prices have remained resilient.
Why Have Toronto Real Estate Prices Not Crashed?
So, what is happening in one of the country’s hottest markets? The broader numbers show many people out of work, businesses shut down and rising household debt levels. At the same time, there has been sustained activity in the number of buyers compared to available listings. This is one of the chief factors in supporting price growth relative to last year’s pace, despite shifting market conditions.
Those who have kept their employment and refrained from dipping into their down-payment savings are in a good position to take advantage of lower borrowing costs. In March, the Bank of Canada (BoC) imposed a 50-basis-point emergency cut to interest rate, lowering its benchmark rate to 0.25 per cent. This is allowing buyers to borrow greater amounts of money at a lower cost over time. The institution has also pumped billions of liquidity into the financial system, making lenders more confident in issuing loans.
The federal government has employed measures to prevent a full-blown economic meltdown. Canada Mortgage and Housing Corp. (CMHC) has supported lenders to cover the cost of mortgage deferrals. In a broader policy tool, the government implemented a wage subsidy program to help employers keep staff on payroll, helping millions continue to collect paycheques and cover their bills.
According to the Canadian Bankers Association (CBA), approximately half a million big-bank borrowers have been approved for mortgage payment deferrals during the pandemic. Banks are ostensibly already planning to work with customers in establishing flexible repayment plans. This has prevented homeowners from flooding the market with properties to avoid defaults.
Put simply, there are still plenty of buyers due to the market-friendly monetary and fiscal conditions driven by Ottawa and the central bank.
The Use of Technology in Real Estate
Another reason for the healthy level of activity within the Toronto real estate market is the commendable and innovative solutions adopted by real estate professionals to help transactions take place as smoothly and safely as possible.
The sector has done an incredible job adapting to the situation. At the beginning of the pandemic, the Ontario government announced that real estate offices were an essential service, allowing them to continue operating during this chaotic time. But the real estate industry has taken other necessary precautions as well.
To mitigate any health risks, realtors have utilized technology to support the home-buying process. They have leveraged digital listings, virtual tours, video conferencing, e-document and electronic signatures. When in-person showings are required, agents have continued to show properties under strict safety measures that include wearing face masks and gloves, having scheduled appointment, and showing the house or unit to no more than two adults at a given time.
What is the Future of Toronto Real Estate?
Over the last 6 weeks, there have been some dire projections for Toronto and the national real estate market. However, as the plethora of economic data has already highlighted, many of the findings are a lot better than what was forecasted earlier in the pandemic. Although the industry consensus is that the future is uncertain, the economics of the outbreak suggests it is not all storm clouds ahead. The fundamentals of the housing market are the same as they were before the pandemic: a huge demand and a short supply. This has not changed, and until it does, you can expect real estate prices in Toronto will not crash.
Real estate listings up in June 2020 over last year, housing report says | CTV News – CTV News
While more homes were sold last month, total sales figures are still off from last year and COVID-19 has a lot to do with it, again.
The Calgary Real Estate Board (CREB) says monthly sales were down by two per cent in June compared to 2019.
Experts say price declines, easing mortgage rates and fewer social restrictions have helped.
“However, the market remains far from normal. Challenges, such as double-digit unemployment rates, will continue to weigh on the market for months to come,” said Anne-Marie Lurie, chief economist for CREB.
The report shows six per cent more homes were listed last month over June 2019, but the benchmark price of a home in Calgary is still down from last year.
The benchmark price is $411,300 while the average home price in the city of Calgary is $460,442.
Sales in other regions outside of Calgary weren’t much better, CREB says. Airdrie’s sales activity was eight per cent lower than last year and sales in Okotoks are well below the 2019 levels and long-term trends.
The housing market in the town of Cochrane fared a bit better, but the increased sales (76) did little to offset inventory, considering 136 new listings were added in the month.
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