Balanced Housing Market Continues to Prevail in Canada
Canada continues to enjoy a strong, stable real estate market, with low interest rates and balanced market conditions in most major markets across the country. Overall, industry forecasts about the Canadian real estate scene are positive, both for the remainder of 2015 and for 2016.
“Industry forecasts call for Canada’s strong real estate market to continue this year and next,” says Andy Puthon, president of Coldwell Banker Canada. “The ready availability of financing at near-record-low interest rates will continue to support Canada’s stable resale housing market.”
Rising average home prices in most areas may cause affordability constraints for relocating employees, so that may cause the sales pace to slow in 2016. A three-year low of inventory of listings (5.6 months in August), coupled with a near-record number of immigrants to Canada in 2015, will fuel housing demand, so relocating employees need to have that in mind when searching for homes.
Following are just a few highlights from the Canadian Real Estate Association’s (CREA) latest unit sales forecast:
- CREA upgraded its MLS 2015 and 2016 forecasts for the second time this year.
- Canadian sales activity is expected to increase 3.3 percent in 2015, with 495,800 sales expected.
- The provinces of British Columbia and Ontario are enjoying a boom but provinces that rely on energy-based economies continue to be challenged.
- National average price expected to rise 6.2% to $433,600 in 2015.
- Predicted 2016 sales activity is expected to continue at near-record levels.
For more information on the Canadian real estate market, I’d like to share Cartus’ recent Canadian Real Estate Market Overview, which provides valuable information for companies relocating employees to and within Canada.