The Canadian housing market is already in the news, thanks to the recent collaboration of Vancouver residents to form the #DontHave1Million campaign that went viral. This Twitter campaign was in response to the recent reports that the average home in Vancouver will set you back $1.27 million, which is more than double the average price of a home throughout the rest of the Canadian market. And, at the rate things are going, this trend shows no sign of slowing down. With this in mind, let’s see the other nine trends in the Canadian housing market to keep in mind in 2017.
More Foreign Investors
In addition to the booming Vancouver market, the booming market in Toronto is such that, while it may not be affordable for the average buyers, it’s certainly affordable for foreign investors.
Housing Shortages. Similar to the housing bust in the United States in 2008, the housing bust in Canada came as a result of predatory mortgage practices. Thus, there are more people that want to buy houses than there are houses available.
Some Areas in Canada Are Experiencing a Boom — Especially Ottawa!
Yes, Toronto and Vancouver are ridiculously expensive, but many other areas of Canada have seen a price decrease over the past year, and this trend will continue into 2017. In addition, Ottawa is experiencing a record high in terms of growth — almost 2000 sales of homes & condos took place in the month of June alone, and the number of sales promise to steadily increase into 2017.
Downsizing
As the so-called baby boomers move toward retirement, they’re no longer interested in owning huge homes with sizable mortgages. Therefore, they’re more likely to sell their family home and rent a small apartment or townhouse.
City Exodus
The combination of the housing shortage and the staggeringly high prices means that people are moving out of the city and into the suburbs.
Senior or Assisted Living Housing
There will be an increased demand in assisted living housing as baby boomers retire.
Banks Will Be Less Likely to Lend Money
After the mortgage crisis of 2008, banks are less likely to give loans, even to seemingly well-qualified applicants.