A recent study conducted by the famous real estate firm “Royal LePage” shows the demand for homes from buyers in Canada is remaining strong even after the increase in borrowing rates. On top of this, the housing market appears to be stabilizing after experiencing a surge during the pandemic. Below, we discuss specific details and topics about what this means.
Signs of real estate market recovery after pandemic effects
It’s no secret that the Canadian real estate market has been experiencing a rollercoaster ride throughout the past few years. Most of which, were caused specifically by the pandemic & Covid. However, Royal LePage’s latest House Price Survey report suggests that the market may be on the path to recovery.
Despite the path to full recovery, the housing shortage remains a significant issue across the country, and experts advise that the government must take action to encourage more development, particularly in affordable housing.
Market recovery in progress
The insightful study shows that the average price of a home in Canada remained nearly untouched compared to last year’s market. The market has dropped only by 0.7% to $809,200 in the second quarter of 2023. This ever-so-small change has indicated in multiple ways that the market may be recovering from the post-pandemic market correction of 2022.
Moreover, there has been a four percent increase compared to the previous quarter of the year. Whilst prices are lower than the highest point of the first quarter of 2022 (5.6%) professionals, and data analysis have excepted the market to hopefully recover in the upcoming months.
The real estate market predictions
For the next half a year, the report states they should be stable & a great time. After that, there is a high chance of a “spike” occurring in the final quarter of 2023. The prediction price is increased by 8.5% compared to the final quarter of 2022. The spike is a tremendous number, and we’ll have to wait to see it out.
Buyers fixated regardless of interest rate spikes
The buying portion within the estate has been differing recently. Most of which, was caused by the central bank’s decision to begin raising interest rates again, shocking many, most estate buyers didn’t mind and remained active on the real estate side. remains strong, particularly among those who have secured a rate hold.
The CEO of Royal LePage, Phil Soper has previously said determined & focused home buyers ready for purchases have accepted the harsh truth of higher initial carrying costs. Important to notice is that these are all predictions for the near future
Sellers continue to maintain a cautious approach.
The study notes & predictions show the sheer number of sellers have been stepping back from the market, has contributed to the ongoing housing shortage. There is a high chance that it is mainly due to the remaining effects of the pandemic.
On average, the buyers during the pandemic’s tail end saw the value of their homes drop during the market correction that followed. However, prices have now steadied enough that homeowners would likely be able to resell today without any types of significant loss.
Without a doubt, is it useful to have guidance when both selling and purchasing. Matin Homes does an excellent service in both, along with additional information and more. Check out more on our website, and contact us!
The housing shortage issue persists
It’s nearly certain the housing shortage problem will continue to a certain degree if the government or third parties step up to encourage more development. More specifically, it should be towards affordable housing for everyone. The shortage is affecting both buyers and renters, and the report suggests that the government must take action to address this issue.
All in all, here’s a little wrap-up for you:
- the market is showing many possible signs of recovery from the effects of the pandemic (COVID).
- Housing shortage remains a large challenge within the market.
- Buyers of the estate remain in the game, not backing off from the interest “spikes”.
- Many left sellers are rejoining the market.
Additionally, the report has suggested a method to gain speed for the market, with creating encouragement & new actives to increase the related development. Remember to know that, with all the data and analytics available currently, it’s still important to know anything can happen, and to be ready to except the unexpected at times.