It is well known that Real Estate Market in Canada has been mainly affected by the decreasing Supply of homes favoring Builders, Investors, and most of the Consumers with assets already, not to blame them, it is just how the market is.
Canadian Real Estate Market is still, and probably will continue to be a Seller’s market, at least for the rest of 2021 and 1st half of 2022.
Interest rates are historically low, giving Buyers more affordability. Canada’s eligible home buying population, (About 63% of total population) will be increasing again, helped by the doors opening to new immigrants. Millennials and Generation Z are finding alternatives to get on the Real Estate Ladder by joining efforts with family or friends or renting part of their new property, and Our Government is implementing Incentives to New Home Buyers as well as Home Solutions to Low Income People. A House Funding Initiative encourages innovative building techniques in affordable housing sectors.
There is a shortage of listings, and the increasing Demand is being in place for several years. The lack of houses for sale has deepen during the last months, creating uncertainty on some possible Sellers who wanted to exchange homes and the diminished Supply did not permit it. Insufficiency of housing still leaves us with multiple offer scenarios leading to higher home prices.
People are now tired of this market; with the post -covid opening, many have lowered their efforts to continue hunting and have decided to enjoy what they can of the rest of the summer. Most of them still dream with a “market change”.
Time will pass soon, and we will see the reality, I do think we have enough reasons to expect no difference in the price increasing trend, at least for some months. With a High Demand over Shortage of Supply, this does not look like changing.