Canadian real estate prices may take a big tumble, Bay Street researchers warn. Veritas Investment Research, a prominent Canadian firm, sent institutional clients a real estate forecast. The firm warned real estate price declines are unlikely, except in the event of supply shock. They now believe supply shock may arrive soon, and can send prices up to 26% lower.
A housing report by TD Economics predicts that high home prices will persist for the rest of 2020. TD Bank economist reports that the real estate market is currently in the seller's territory. The national sales-to-new listings ratio in Sep was 77.2%. In Sep, markets were the tightest in nearly 20 years - resulting in home prices to rise. The national avg home price set a new record in Sep and will continue for the rest of 2020. Home prices will likely drop through the first half of 2021 by 7%, before re-gaining some traction later next year.
Statistics released today by the Canadian Real Estate Association (CREA) show national home sales continued running at historically strong levels in October 2020.
Summary:
National home sales edged back 0.7% on a month-over-month (m-o-m) basis in October.
Actual (not seasonally adjusted) activity was up 32.1% year-over-year (y-o-y).
May the divine light of Diwali spread into your life and bring peace, prosperity, happiness, good health and grand success. May the beauty of Diwali season fill your home with happiness, and may the coming year provide you with all that brings you joy!
Wishing all those who celebrate a very happy, safe and blessed Diwali!
We all like renovating our homes every once a while...isn't it? The question is are we doing it the right way? Check out the video below to understand some of the most commonly made mistakes we make while renovating our homes and how it can help you to do it the right way!
For most young people these days, the prospect of owning a home feels pretty distant at best — and impossible at worst. The Canadian real estate market, in major cities especially, has become such that only those with large amounts of capital available to them are able to invest in property.
Lower interest rates become a motivation for young Canadians to get into the housing market (Scotiabank). Despite the pandemic, 18% of Canadians 18-34 years old said their plans to buy a home have been accelerated. Rates are historic-low and they're going to be there for a long time (Bank of Canada Governor). 25% of Canadians believe prices will come down but the younger cohort was the most optimistic group (Scotiabank). Record-low rates are driving millennial's growing optimism around achieving their housing dreams.
Competition between buyers of single-family homes, and particularly detached houses, remained strong last month and continued to support double-digit annual rates of price growth in many GTA neighborhoods. In contrast, condo buyers have benefitted from much more choice compared to last year. Pre-COVID polling had already pointed to an increase in investor selling in 2020. The pandemic only added to this trend with a stall in economic growth and a halt to tourism impacting cashflows for many investors. – Lisa Patel, TREB President
