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.