Canadian Housing Market Rebound – May 2023
Canadian Homes – Increasing in Value?
Hey there folks! If you’re in the market for a new home in Canada, now might be the perfect time to start looking.
According to recent reports, the Canadian housing market is picking up steam this spring and home prices are rebounding after a brief lull.
Of course, Canada is an enormous country and has many diverse housing markets…in other words, a boom in Winnipeg doesn’t necessarily mean a boom in Antigonish 🙂
House Price Factors
The return of relatively lower interest rates (historically in Canada, interest rates have ranged between 5-6%) and increasing demand for housing are two factors driving this surge in the housing market.
Another factor is massive immigration numbers – approximately 500,000 new Canadians are set to join our ranks this year. That’s a 1.3% increase for 2023.
With lower mortgage rates, many people are looking to take advantage of the opportunity and purchase a new property before the market gets too hot.
Even rental properties are looking appealing with a 5% fixed rate still allowing for positive cashflow on investment real estate in some markets. See related post explaining the math HERE.
As a result, home prices in Canada have risen by an average of 2.2% in the past month alone, giving homeowners some relief from concerns about decreasing property values.
The Opinion of the Canadian Real Estate Lobbyists…
The Canadian Real Estate Association predicts that this trend will continue throughout the summer, with home sales expected to rise by 8.3% in the coming months.
This surge in demand is sure to make for a busy season in the Canadian housing market, with more people looking to buy and sell properties.
Again, take the 8.3% with a grain of salt as each market will have its own characteristics.
House Price Hurdles – Not good for all
For those looking to enter the market, the increase in home prices and competition may pose a challenge.
This is a good reason to reach out to a professional mortgage broker. Call Huber Mortgage to discuss your goals.
Consulting with a mortgage expert can help you purchase your home once you understand the ins and outs of qualification and get your application looking as good as possible before speaking with any lenders.
Double Digit Growth
Meanwhile, in another report, the Canadian housing market is seeing a surge in sales with double-digit growth.
According to the Financial Post, Canada’s real estate market saw a 12.5% increase in home sales in the first quarter of 2023, compared to the same period last year.
In fact, sales have already surpassed the pre-pandemic levels seen in 2019.
This surge in sales can be attributed to various factors including lower interest rates, increasing demand for larger living spaces and the influx of immigrants and foreign buyers.
The pandemic has shifted priorities for many people, leading to a preference for larger homes with more outdoor space.
Real Estate Competition
While the surge in sales is good news for the real estate industry, it’s important to note that this also means higher prices and more competition for home buyers.
If you’re looking to sell your property, now might be a great time to enter the market.
All in all, it’s an exciting time for the Canadian housing market.
With both home prices and sales on the rise, it could be the time to consider buying or selling a property.
Just be prepared to face some competition and higher prices if you’re looking to enter the market! Call Huber Mortgage to get your application approved!