Author - Garry Sahota | Real Estate Professional | Homelife Higher Standards Certified Agent |
Many factors have fueled the prices of housing market. But what will bring this trend down? Read my insights on this.
Date: 05 May 2021 | Cambridge, Ontario | Garry Sahota | Article on Housing market
Work-from-Home is revolution, new trend, changing world scenario which was experienced by millions and witnessed by trillions. COVID-19 does not only affect the health but has made the population to rethink about the choices they made.
As realtor when I visit the local towns and communities and ask the realtors and locals, how is the housing market here? “Its crazy down here!” said one. “But it’s crazy and chaos everywhere.” They are right about both statements, what ever is happening in local towns and counties is part of familiar trend all over Canada and across the world where metropolitans are leaving the expensive downtowns for greener neighborhoods and smaller cities.
This trend is pushing the home prices skyward by more than thirty percent than the last year. Low inventory of new houses, projects on hold by builders due to shortage of lumber, has added more fuel to the fire.
Lumber prices have risen by 130%, and those increased costs have increased the cost of single-family homes more than $16,000 on average.
Now As vaccination is on full swing in Canada to bring the pandemic to end, question here is, as downtown offices reopen and people start remembering the delights of urban living, start missing the amenities of big city living, concerts etc., what will happen to the housing market? Will the market collapse, will prices come down? what about lumber, when builder gets full fledge supply of lumber, will inventory boost will burst the bubble? So many questions and so many experts, but no definite answer to this.
Immigration Canada welcomed near about 200,000 permanent residents in 2020, which was the lowest number ever since 1998, mainly due to travel restrictions and lockdown conditions. This has prompted the federal government to increase the target of immigration to 400,000 annually until 2023. More newcomers to country mean more people looking for rental houses and potential property buyers down the line. Investment properties will keep flowing seeing the number of rental prospective which will further help the housing market to keep the prices stable. Downward trend is nowhere near to see until federal government announces major changes and comes with the plan of affordable housing. Stable market is healthy market. Let us all hope that happen soon.
If you are in market to buy your dream home or have more questions about real estate whether it is selling your home, mortgage advice, first time home buyer grant or any other concerns, please feel free to reach out Garry Sahota. I will be incredibly happy to assist you.