Introduction
Currently, the Canadian price trends in the real estate industry are all about navigating the uncertainty. As technology advances and social change takes a new turn, many people find themselves swept away by the transformations which determine how they live and work. The real estate sector is compelled to respond to the increasing demand for housing in some areas more than the others. These changes are key factors that affect the price trends in the real estate market all around Canada. That being said, the following factors play a crucial role in determining prices for houses in many Canadian cities. You can check out property listings here: HomeAds.Ca in order to have a clear picture of the home prices in Canada’s cities.
Low Supply Means the Demand Is Higher
In most cases, when the demand is high, it means that the supply is low and vice versa. This is the current situation in Canada where there is a huge demand among international and domestic buyers of residential real estate. Many of the major cities, especially in the vast luxury market, have experienced people flocking to those areas in search for better homes to buy. Therefore, the trend seems to continue that way, which in turn affects home prices. As demand increases so do the prices of homes.
The Type of Buyers
Canada offers opportunities for international buyers who normally dominate the well-known luxury property segment. For instance, Vancouver alone accounted for a staggering 85 percent of the luxury real estate market transactions involving foreigners in 2017. In Montreal, it was the same trend with 30 percent of the buyers being foreigners. However, the majority of the international real estate investors are from Asia and Europeans (such as French, Germans and Italians) come in second. As a result, the prices of homes in up-market areas has gone up as more and more international investors go to Canadian cities.
The Upcoming Tech Scene
As tech hubs grow in Canada, the number of people coming to work or lend their expertise in that sector increases all the time. Take Toronto as a case study here. The city is currently known as the “Silicon Valley North” and scores of investors are settling there from all corners of the country as well as other parts of the world. From global entrepreneurs to VCs all the way to tech executives, the city is experiencing an influx of different investors. In fact, Google laid down plans to set up an innovation hub in Canary District. When it comes to Montreal, the gaming industry is booming thanks to the approved government grants that have seen the industry thrive. Consequently, the real estate market has improved greatly due to a large number of home buyers settling in those cities.
The Emerging Millennial Homebuyer
There is a new segment of buyers (millennial residents) who are rushing to buy into Canada’s thriving tech innovation hubs in cities such as Montreal, Toronto and Vancouver. These areas are attracting large numbers of entrepreneurs, investors and developers looking to buy homes in those cities. Also, 37 percent of Canadian millennials are assisted by their parents when buying their own homes. Based on the new mortgage stress-test rules, it is projected that there will be an increase of first-time buyers getting parental support when acquiring their homes. This new trend has seen a steady increase in the prices of homes in different cities and regions driven by varying demands.
The Need for Second Homes
As more people look to buy their second homes, property developers have found a better market and new clients. The need for second homes has seen growth in certain secondary home markets and this has affected the prices of homes in one way or another. A better example of such homes has been seen in Montreal where both Canadians and foreign investors are scrambling to buy properties with ski-in or ski-out access, which has driven the demand to go high. Other areas next to recreational facilities and social amenities have experienced the same price trends.
Canadian price trends in the real estate market are driven by the ever-increasing number of people from all parts of the world. As the demand rises, the price of homes gets higher and this is of great advantage to any property investors in Canada. The trends will continue even in a few years to come as long as Canada keeps on attracting people all over the world to settle there.
