What Slumping Real Estate Prices Mean for the Canadian Housing Market
Have you heard about what’s currently going on with the Canadian real estate market? Home prices are slumping in much of the country. But what exactly does that mean? It really depends on whether you plan on buying or selling anytime soon. Plus, what the housing market is doing really depends on where you live. After all, there is a huge gap between different parts of the country when it comes to the current housing market. Get the scoop on what you should know about Canadian real estate right now and what you should be on the lookout for in the future.
Lower Sales and Prices
This March, home sales dropped to the lowest they have been since 2013. That’s a pretty significant slump for those who are keeping their eye on the Canadian real estate market. Sales through the Multiple Listing Service have dropped 4.6 percent when compared to the figures from last year, which is quite a drop. However, not only are there fewer sales happening right now, but home prices are also decreasing, according to the Canadian Real Estate Association.
Dependent Upon Location
It’s important to note that these figures do not represent all of Canada. In fact, there are major differences between different parts of the country, and potential buyers and sellers should know about these differences. While sales in Saskatchewan, Alberta, and B.C. were far below their 10-year average in March, other areas, including New Brunswick and Quebec saw an opposite outcome — their rates are actually well above average. This could have to do with preferences of certain areas within the Canadian real estate market.
Adjusting to New Policies
While the current housing market in Canada may not be looking great right now, experts largely believe that that is largely due to some changes to Canadian real estate in the past few years. Higher mortgage rates and changes by the government have made it impossible for some potential homeowners to buy, which means that they have largely kept renting. But considering the regional divide, it’s likely that these numbers will continue to grow more stable within the months and years ahead.
According to Doug Porter, Bank of Montreal chief economist, “We continue to contend that prices, sales and starts are likely to hold broadly stable nationally in 2019 amid the many moving parts for the market.” This is a sign that the Canadian real estate market might see some more changes over the coming months.
Whether you are thinking about buying or selling a home, it’s extremely important to keep a close eye on any changes to the Canadian real estate market so that you know where you stand. If you need to get a better grasp on the current real estate situation, you should reach out to a trusted realtor in your area who can help you navigate the choppy waters of Canadian real estate. With someone on your side to guide you and help you understand these changes, you can easily learn the best way to make your next real estate move.