Every year, homeowners ask the same question time and time again; what’s going to happen in the real estate market this year? In more recent times, the theme seems to be centered around the possibility of a crash and we now have the answers thanks to various reports from financial companies.
Move Away from Banks
Before we head into details regarding the actual market, we should point out that more people are choosing to ignore the traditional method of funding; the banks. Not only does it take quite a long time to contact each bank and find the best rates, it can also be a costly experience. With this in mind, many are choosing to go through companies like Benson Mortgages.
With a strong team of experts, Benson Mortgages work with a number of banks as well as private lenders which means that you are more likely to find terms with which you are happy moving forward. Rather than succumbing to the power of the banks, you could find better terms with private investors. Furthermore, these types of company have superior knowledge of the real estate market in Canada and are well-aware of the ever-changing market conditions.
In terms of what can be considered the most crucial factor, house prices, we can predict a slight increase of around 2%. If this is followed, we could enter 2018 with an average house price of just below $450,000. Although this growth figure considers the whole of Canada, we should point out that some areas are pushing the country forward significantly more than others. For example, Greater Vancouver and Greater Toronto Area is keeping this figure higher. Gains could start to slow right down in 2018/2019.
Toronto, which deserves its own special mention here, has shown unprecedented growth with median house prices raising 19% last year. The fastest house price growth in the world. With the average sale price at $1,561,780 for a detached home in 2017 the market is still not showing any signs of cooling with some convinced that Toronto’s housing market is a “national crisis”.
Elsewhere, house prices are expected to remain very similar in Saskatoon, Regina, and Edmonton. All things considered, the energy-dependent regions will also see a weaker performance compared to these two vast areas of Canada.
Since interest rates affect your ability to save and borrow, we should also look at this projection. Just recently, fixed-rate mortgages were raised once again but the Bank of Canada has been looking to hold interest rates steady for a time in 2017. However, there is evidence to suggest a cut to interest rates in the second half of this year. Since there is a projected downturn in housing activity, many experts expect the interest rate to come down to 0.25%.
On the whole, unemployment is still very low which means that there are a huge number of people looking to buy every year. According to one recent report, around 50% of Canadians are looking to move within the next 5-10 years which is important to note. If we look at simple supply and demand, there is going to be constant demand for properties over the next decade. If there aren't enough homes entering the market, we could see the average price of properties continue to rise.
There we have it, a brief review for what is to come in the Canadian housing marketing in 2017 and beyond. Of course, no-one can ever be 100% certain and there are always going to be reports of the housing market crash which is something that has been predicted for many months now. If you are interested in buying yourself, don’t forget Benson Mortgages as they work with numerous companies to find the best rates and opportunities for you!