CANADA’S HOUSING MARKET IN A NUTSHELL

TD Economics has released their latest housing market update, highlighting the many high and low points of Canada’s ever changing housing market.

 

CANADA’S HOUSING MARKET IN A NUTSHELL

 

Canada’s housing market is expected to stabilize in 2016 in most areas. Low interest rates will likely remain relatively stable with only small increases, and this is primarily responsible for the continued drive to purchase new and existing homes. However, the current state of the oil marketplace will also impact housing sales across the country, and in some areas this could mean that stabilization is not likely to take place until sometime in 2017.

 

Canada’s markets with the lowest inventory of existing homes, including Toronto, Vancouver and their surrounding areas, will experience stronger price gains and a continued seller’s market. In contrast, Saskatchewan Newfoundland and Labrador are expected to see a decline in sales, as these are the largest oil producing areas in Canada, and dropping oil prices could mean a slower economy and higher unemployment rates in these provinces.

 

CALGARY

 

Calgary, existing home sales have fallen by up to 36-percent from their peak in 2014. This is directly linked to declining oil prices and the loss of jobs in both provinces. Many are leaving their homes to find better career opportunities and financial situations elsewhere, meaning both new and existing homes sit on the market longer and prices are driven down. As oil prices stabilize, expect to see some stabilization in both markets and a return to a more secure housing market.

 

VANCOUVER

 

Those waiting to see a significant decline in the Vancouver housing markets will likely need to continue waiting. While these areas may see some shift toward neutral with even the slightest increase in interest rates and the new housing regulations, foreign investors remain particularly interested in both areas and inventory remains low. This continues to drive the market and support the demand for new and existing homes.

 

OTHER PARTS OF CANADA

 

Most other markets across Canada remain stable. Both existing and new home sales and prices continue to experience modest gains, and they are entering 2016 in a rather balanced state. These markets are not expected to experience a significant squeeze from the slight rise in interest rates or the new regulations. Fair employment rates and financial pictures in all of these areas continue to benefit the housing market and drive individuals to purchase homes.

 

Overall, Canada’s housing market remains favorable with commonly seen highs and lows in various provinces across the country. 2016 looks promising, and many analysts predict that this year will see stabilization that benefits potential buyers as they search for their new homes.