As we all know, Canada’s real estate industry is a topic that never ceases to amaze. From sky-high prices to unprecedented reforms, it’s a marketplace that holds no shortage of surprises. But if you really want to get to know the latest trends, events, and happenings, you need to dig deep and look closely.
So, let’s pull back the curtain and explore what’s really going on.
To begin with, let’s talk about the latest developments in mortgages. With interest rates hovering around a historic low, Canadians are eager to take the plunge and buy their dream home. However, under stricter conditions, lenders may require larger down payments from buyers, making it difficult for first-time homebuyers who are already struggling to save up. The situation has been further complicated by the Canada Mortgage and Housing Corporation’s announcement that they will tighten their underwriting policies.
On the flip side, there’s good news for sellers. Housing demand in Canada remains strong, despite the pandemic. In fact, according to the Canadian Real Estate Association, home sales in October of 2020 were the highest on record. This trend is particularly pronounced in smaller, more affordable cities. For buyers looking for a change of scenery, it’s worth considering moving outside of major metropolitan areas.
Another topic that’s worth exploring is the impact of COVID-19 on the industry. While we’re all coming to grips with the “new normal,” the pandemic has dealt a significant blow to the real estate market in some respects. Open houses, traditional showings, and face-to-face conversations with buyers and sellers have all become much harder to come by. Instead, virtual showings and online tools like 3D property walkthroughs are becoming increasingly popular. However, this shift towards remote services has also opened up opportunities for new players in the market to reach wider audiences.
Finally, let’s take a look at Canada’s policies on foreign buyers. In recent years, the Canadian government has taken several steps to cool down the real estate market, particularly in cities like Vancouver and Toronto, where foreign investment has driven up prices. These efforts have included taxes on foreign buyers, restrictions on short-term rentals like Airbnb, and tighter regulations on mortgages. While these measures have stabilized prices to some extent, many argue that more needs to be done to protect Canadian citizens who are struggling to afford a home.
Overall, the Canadian real estate industry is a complex and ever-changing ecosystem. While challenges remain for first-time homebuyers and those struggling to afford a home, there are still exciting opportunities for sellers, including the demand for housing in smaller, more affordable cities. Meanwhile, the pandemic has forced industry players to adapt to new ways of doing business, creating new opportunities for remote services and technology. So, whether you’re looking to buy or sell, now is certainly a time to keep your eye on the latest trends and developments in this fascinating marketplace.