What You Need To Know About Canadian Real Estate In 2018
Canada’s Real Estate Market in 2018: What’s going on? How is the market? Where should I buy? These are questions most Canadians are asking themselves this year. To help you get a sense of how the market is doing, here’s what you need to know about Canadian real estate in 2018.
Interest rates are going to take a hike
The Canada Mortgage and Housing Corporation (CMHC) is expecting mortgage interest rates to rise from now until some point in 2019. They claim the posted five-year rate is probably going to be anywhere between 4.9-5.7% this year and jump to 5.2-6.2% as of next year. This past January, the majority of Canada’s banks started to raise their five-year mortgage rates, with the Bank of Canada increasing its overnight rate target to 1.25% on January 17th. However, there is a silver lining to the Canada real estate 2018 rate hike: These rate raises are generally based on Canadian employment numbers, which means that most us already have gainful employment or will be able to find work in the near future.
The local market is the Canadian market
There are two definite areas you can start exploring the market - where you live currently, as well as the desired area you would like to move to. For example, if you’re looking to buy property in Toronto, that’s the market you should be looking at. It is not necessary to look at the Canadian market as a whole or compare prices in Toronto to those in Vancouver or Halifax. Furthermore, locations such as Calgary and Edmonton are still in recovery-mode so it doesn’t make sense to compare thriving markets to those that are finally rising back up.
Vancouver is the new Manhattan
Here’s some news for canadian real estate in 2018 that you may have already seen coming: housing prices in Vancouver are now more expensive than those in New York City. Home prices in Vancouver have been on the rise for years. Yes, the government has stepped in to try and control the madness, but their efforts are taking time to develop leaving the housing prices to skyrocket. Once the government’s strategy does kick in, the housing prices may drop but don’t hold your breath just yet!
Family-sized condos are coming
If we look to the Greater Toronto Area as a guide, 2018 will see the development of more family-sized condos. Instead of building traditional two-bedroom condos, we’ll see 3-5 bedroom units being constructed to give people more housing options. In addition, green building will become the norm across the country, so we don’t sacrifice the environment to keep Canadians housed.
If you have questions or are looking to buy a property, please contact us today.