Regardless of the view investors and residents have of the current real estate situation, the Canadian real estate market is still confident that the chances for growth are still high as it can be seen that most investors are shifting their investments to other lucrative areas.
Toronto and Vancouver markets had the most attention in the real estate market over the few months but although things are still not yet under control, it seem that prices will go back to normal at any time.
There have been making issues that have been affecting the housing market and few of them are the housing affordability, the fragile economic growth, and high debts by consumers. Collating the figure from last year to that of 2017, the average price for housing is anticipated to drop by -0.9% in 2017 as opposed to that of 2016 which increased at 10.6%.
A decrease in the housing prices will definitely be felt the most by the Toronto and Vancouver markets but other areas like Halifax, Ottawa and Quebec City will experience a slight increase.
Even though there are many openings for growth, the situation cannot all be the same for all markets, as each market is different.
According to Frank Magliocco, Partner and National Real Estate Practice Leader, PwC Canada, explained that “the unique economic and demographic factors in each terrain are producing various possibilities for knowledgeable investors in the country who are have their mind set on emerging needs and trends of the market.”
In the report jointly released by PwC Canada and the Urban Land Institute, there are six key areas that should be given much consideration for the coming year.
Upcoming communities should be taken into much consideration as the Canadian urban population is growing, their needs are also changing. The combination of commercial and residential development is on the rise hence investors should be more creative when designing public spaces.
The housing prices have also become a major concern in Canada and houses in Toronto and Vancouver areas have been unaffordable for average income earners and the increase number of immigrants for the years to come will not also help the situation as there will be an increase in the demand for houses, hence more pressure will be place on affordability unless the supply matches up to the demand.
The renting trend has also changed as a result of high house prices, more people are deciding to rent house for longer periods as they cannot afford to buy a place of their own.
The advancement of technology is also another key factor that should be taken into consideration as more people are taking advantage of newly available technologies.
They are now expecting much development in energy-efficient properties and services, new systems in waste management and energy preservation. Firms also are making efforts to develop virtual tours, which will cut down on showrooms.
Although the country is doing its best to put its economic status under control, it is still a cause for concern over the global political and economic instability. Most investors and residents believe that the fragile Canadian dollar coupled with global insecurities will continue to put pressure on the Canadian housing market.
The varying oil prices is one issue that Canada should be watchful of, as it continues to affect the economy.