Wednesday, September 6, 2023 / by Teresa Pileggi
HOUSING MARKET INQUIRIES
People often seek information on the current trends in the housing market, including price fluctuations, inventory levels, and the overall health of the real estate industry. Real estate market trends play a huge role in the housing market.
According to the Canadian Real Estate Association (CREA), Prices have grown around 10% to 15% across the country since January, equivalent to the beginning of 2022, before the Bank of Canada’s interest rate increase of 25% basis points. Concerns about housing affordability have been on the rise, with people wanting to know about affordable housing options, government assistance programs, and strategies to save for a down payment. With rising housing prices, many individuals are concerned about affordability. People seek information on strategies to afford a home, government assistance programs, and ways to navigate the challenges of buying or renting a property. Many individuals research the steps involved in buying a home, such as how to qualify for a mortgage, negotiate offers, and understand the closing process
Housing Market Forecast
People often look for predictions and forecasts for the housing market, including future price movements and potential economic influences on the real estate sector. Wondering whether or not prices go up or down from here in Canada. Let’s start by looking at economic factors that would cause house prices to increase in Canada.
· Canada's population grew by 1 million last year.
· Canada was the top global destination for international students in 2022, which supports the demand for rentals.
· Rents are rising- and when rent prices rise, investors' willingness to pay for property increases.
Housing Market Outlook
People are interested in understanding the current state of the housing market, including trends, forecasts, and predictions for future developments. This often includes questions about housing price appreciation, inventory levels, and interest rates. Investors frequently inquire about the best markets for real estate investment, property valuation methods, and how to generate rental income. Many individuals are interested in real estate as an investment option. They research topics such as rental property profitability, real estate investment strategies, and tax implications related to property ownership.
Impact of COVID-19 on the Housing Market
One of the biggest economic factors affecting real estate is interest rates. When the pandemic hit, interest rates were reduced in an effort to help boost the economy. Things are now looking up again and there is a high possibility that interest rates may follow suit. People are still keen to understand how the pandemic affected and will still affect housing demand, construction, remote work's influence on location preferences, and government interventions to support the market.
Housing Market and Millennials/Generation Z
Younger generations face unique challenges in the housing market, including high student debt, changing preferences, and affordability concerns. A considerable focus should be on understanding how these factors influence their ability and willingness to enter the housing market.
Keep in mind that housing market trends and research can change over time, and new developments will always emerge. For the most current and accurate information, I recommend checking our updated blogs and other reputable sources and research institutions specializing in real estate and housing market analysis.