Says the expert: what awaits the Canadian real estate market
The forecast for the next three years comes from a Toronto realtor.
There's a shortage of affordable housing in Canada, which is why everyone in the country is interested in the real estate market. Canadian magazine The Narcity interviewed Trish Mackenzie, a Toronto-based realtor, for a forecast.
Housing prices in Canada fell in the first half of the year. For example, cottages became noticeably cheaper. The impression that the real estate market has stabilized, but it is false. In the second half of 2023, experts expect an increase in home prices. The reason for this is the increased demand and insufficient supply. Canadians are competing for every house and apartment, which causes prices to rise.
Prices will rise the most in British Columbia and Ontario, Canada's most popular provinces. Budget housing will be available for purchase in the Prairies, i.e. Alberta, Saskatchewan and Manitoba.
Mackenzie believes that even after 2023, demand for housing will exceed supply. Balancing the market will help older Canadians, who prefer to sell their homes in their old age and move into a smaller apartment. Retirees have a hard time taking care of a large home, so they sell to younger families. This will soon be the case for the Canadian baby boomer generation, that is, people born between 1946 and 1964.
Canadian authorities also intend to increase supply. For example, British Columbia promises to build dozens of new apartment buildings.
Mackenzie says housing prices will not rise between 2024 and 2025. Inflation will keep them in check. Experts expect home prices to fall to 2019 values by 2024.
For those who want to buy a home, Trish recommends that they prepare in advance. Families who start saving for such a purchase 1-2 years in advance are successful in buying homes. This helps reduce losses and makes it easier to choose the best option. Haste is not a good advisor. Mackenzie also advises improving your credit score ahead of time. You can make it almost perfect in a couple of years. This will help you get a mortgage loan on favorable terms.
There will also be a growing number of housing with alternative forms of ownership. For example, homes that are purchased in a joint venture by several families are becoming popular. Here Canadians are going back to their past — in the past, several generations of one family owned one large plot and a house.
