Will Canada’s Real Estate Boom Extend Into 2016?

At the beginning of 2015, many predictions were made about the Canadian real estate market. People thought that the housing bubble would burst and the result would be a housing market crash. But the Canadian real estate market proved these predictions wrong, breaking a number of records. The hottest spots were Toronto and Vancouver, while the rest of the country’s housing markets moved towards a more stable market. But will this high remain into 2016?

According to Gurinder Sandhu, the executive vice president of RE/MAX Integra Ontario-Atlantic Canada region, the three housing markets that currently make up Canada’s real estate sector will most likely continue to do so. Sandhu expects the Vancouver markets to continue to excel, while the rest of the country may experience modest price increase. The markets that are oil dependant, however, are likely to experience fewer transactions and reduction in prices, thus pushing down the average prices of Canadian real estate.

But how exactly will the changes in the real estate market affect the people of Canada? And what should we do in light of the real estate market being at possible risk in 2016? Well of course, this depends on your situation. Whether you are looking to buy a home or sell one, here is some advice for you in Canada’s 2016 economy:

For home buyers:

If you’re looking to buy a home in Canada in 2016, you are lucky in that you have a bit of time to do so. This is because the market is likely to be steadier than has been in the three- year period from 2012 and 2015. In this three year period, prices drastically and consistently increased, thus leaving home buyers scrambling to get homes before they became too expensive. In 2016, buyers will have time to shop around before buying properties. However, in Toronto and Vancouver, buyers may need to prepare for tougher mortgage quirements. If you’re looking to buy properties in oil-producing provinces such as Alberta and Newfoundland, there is likely to be an erosion of housing prices in this area. But don’t get too excited: the eroding job market could ultimately create tougher lending conditions.

For home sellers:

If you’re in Canada and looking to sell your home, expect a slower market. This means that multiple offers will no longer be the norm. Homes will be on the market a bit longer while buyers shop around. But there are a few types of homes that should sell quickly with no problem: single family detached, semi-detached or row homes in Vancouver and Toronto. These housing types made up the majority of sales in 2015 in the Greater Toronto Area. In oil producing areas, there are likely to be job losses in 2016 due to low oil prices. For this reason, it may be best to wait to list until oil prices rebound, thus creating a larger job market.

There is no way of knowing what will happen in Canada’s real estate market in 2016. But from a number of predictions, it appears that the market will remain stable with Vancouver and Toronto continuing to experience real estate booms. If you’re looking to buy, sell, or invest in Canadian real estate, make sure you do your research and take all aspects of Canada’s real estate market into consideration.

World Economy 2016

With 2015 concluding last week, it gives us the opportunity to make resolutions for the year ahead. But what will be some resolutions for the global economy in 2016 ? The global economy can also have significant impact on the real estate market as well. The reason is because if the economy is not performing well it could lead to people not looking to buy houses or having people not being able to pay mortgages.  It is too early to tell on how much of an effect it will have and we may not have the answers for awhile, but here are some ideas on what to expect in from world economy in 2016.

The United States and China are two of the largest most important economies in the world and how the two economies perform have a drastic effect on everyone else.  For the U.S, the Federal Reserve has raised interests rates for time since 2006, which is huge deal. This can obviously cause much of a concern for economies that have started to be on the rise .  According to bbc.com the change in the United States interest rate will  “likely to lead to higher borrowing costs, and lower currencies, because money will be moved to the US to benefit from the rising interest rates there”  However, so far there has been nothing to worry about in the financial world since this has occured, but you never know what could happen down the line.  

China, is another prolific economy and they have encountered some negative economic growth recently. However, due to  the slow economic growth there has not been a sufficient crisis that anyone has to be concerned about, but  it is still nothing to brush away.  The decline in manufacturing was seen to be as an issue for China and the with this type of decline it has had a major impact on global commodity prices such as oil, metals and food.

Oil has been yet another concern for the economy. The price of oil is not as expensive as it was a year ago, but many consumers feel they are not seeing the full benefit of it. Professor Kenneth Rogoff, a former IMF chief economist said that people in some countries are using oil “as an opportunity to cut subsidies rather than allowing consumers to get the full benefit”.

For more information, check out: http://www.bbc.com/news/business-35191325