The Covid-19 pandemic has brought about various shifts in the Canadian economy. The government has been at the forefront in trying to tame the pandemic while preventing further job losses. The real estate has not been left behind.
The Canadian Central bank has several times slashed the benchmark interest rate bringing it down to its current 0.25%. This has in turn directly affected the calculation of mortgage rates. These cuts are meant to prompt buyers to take advantage of the lower mortgages to acquire homes.
Buyers to take advantage of affordable homes in Calgary
When you compare home prices in Calgary with other big cities in Canada like Vancouver or Toronto, then you will realize that the town is very ideal for first-time homeowners. In Vancouver, the average price of a single-family home will set you back to $1,501,900 and around $685,800 for an apartment. This compares sharply with Calgary, where the average price as of August 2020, is $466,000 for a single-family home and $248,500 for an apartment.
Calgary proximity to mountainous scenery and excellent views makes it an excellent choice for city dwellers willing to change environments. The lower prices for houses in Calgary against the big cities means that homeowners have more money left in their budgets for home improvements. Finding a Calgary painting company isn’t that hard with many occupying the market. The extra money one gets from low mortgage rates can be applied to various residential and commercial painting services. This is more pronounced should you decide to purchase a second-hand home. Repainting offers you the benefits of changing the curb appeal of the house, improve appraisal values and protect walls from destruction.
CMHC Predicts further dips in home prices across Canadian cities
According to the Canada Mortgage and Housing Corp (CMHC), it is estimated that home prices will decline by up to 12% over the next 18 months. While these are just predictions and a lot may happen between now and 2022, it will influence a lot the demand and supply of houses in major Canadian cities like Vancouver, Toronto, Montreal, and Calgary.
The predictions are further complicated by the fact that many health observers are not sure whether there is going to be a second wave of the Covid-19 pandemic. The most hit by the pandemic are part-time and wage earners. This means that the demand for housing has moved more towards the single-detached and low-rise homes. Demand for housing has also been stifled by low immigration numbers due to the pandemic.
Most analysts believe that the Benchmark interest rate is at its lowest and they do not expect it to go further down. However, it is still too early to be conclusive on the effects of the pandemic on the housing market as most big cities’ housing markets have remained resilient. In Calgary, the decline in housing prices is expected to be between 2.5% to 12%. Other cities still recovering from the oil and gas recession like Quebec, and Ontario, recovery may take some time.
