The Canadian real Estate markets after years of ups and downs are finally on the brink of stability, especially Post Covid-19. Due to the pandemic the mortgage rates went to their all-time low. Also, the competition between the home buyers began for more space. At the same time, due to the real estate circumstances the housing inventory went to its lowest in terms of records. This was found to be a fact for the most Canadian cities. Hence, as the effects on Real estate were more uniform throughout the whole country Canada. According to the financial post which claims that this shortage of home for sale isn’t going to change anytime soon. This is because there are fewer homes on the market as compared from the last several years.
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INTEREST RATES IN THE NEW YEAR 2022:
It’s the interest rates that counts huge numbers in the real estate sector as it is indeed a vital ingredient. However, there is a good news in year 2022, and it is that the interest rates have already begun to rise over the last several years. However, the bad news at the same time is that the interest rates are still lagging behind their historical averages.
Hence, if the market conditions stays the same, it is a very high possibility that the banks will going to increase the mortgage rates even more. Something, which will surely give the buyers an incentive to act. Instead, of waiting for the rates to rise even more. If you still plan to purchase a home this year, please don’t wait for the rates to rise more. It’s advisable to get into the markets while you can still claim that low interest rate. You are not the only one in the markets as there are millions of homeowners looking for homes this year.
SELLING & BUYING BEHAVIOURS IN 2022:
The selling & buying behaviours show a massive change in patterns as compared to previous years since 2019, i.e. the times when the pandemic began. However, what’s been transparent in terms of the facts is that the past couple of years have showcased a seller’s market. There has been a serious rise in the cost of houses that allows the homeowners to sell their homes for a handsome and substantial price. This will be a good profit for them if they can manage to make most of the time factor.
Thus, the more populated areas which includes Aberdeen in B.C. and Kamloops have become some of the most sought-after residential areas in Canada. As a reason to this, the home prices will stay strong in next upcoming years and the reason is competitive prices. Ironically, as homes are more difficult to acquire due to their market value. The real estate experts are of the opinion for the potential home buyers that they must expect a competitive market in 2022. There are very little, in fact nearly no signs to slow down in these densely populated British Columbian cities.
PRICINGS IN THE NEW YEAR & THE FACTORS INVOLVED IN 2022:
According to the experts in the Real Estate markets in Canada, the sales are going to drop significantly in 2022. There are projections of a significant 12.5% decline which is making the potential buyers a bit nervous and tentative. Thus, the buyers are thinking to wait for at least a year or two so that the markets get back to their original buying population which is far more feasible for potential homeowners.
CREA or Canadian Real Estate Association is an organisation that works regards to making predictions as to the buying behaviours and sales as well as generating statistics. CREA has reported an average increase of 5.7% in the housing costs over the last year. The organisation also predicts that these figures will not change in the rest of the year, i.e. they will stay same until start of 2023. This makes the home buyers to be in the driver’s seat with fewer home on the market.
The state of affairs for the rental markets are not that different either, than the buyer’s markets. The rental markets are more likely to feel the same magnitude of pressure too as buyers opt for cheaper options as opposed to purchasing a home. This will ultimately cause the rental rates to rise which means fewer vacancies and more renters.
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In the midst of warnings & precautions the real estate have shown abnormal yet predictable behaviours. True for both buyers as well as rental markets as both of them have been showing changes due to differences in behaviours. As a matter of fact, it’s true that it can be hard to make predictions for Canada’s real estate markets in let’s say next five years. However, it’s also a fact that there is certainly never been a better time to invest in Canadian real estate markets than at this very moment.