Real Estate Updates – Reasons For Canadians to Be Upbeat
Most economic experts and market analysts are predicting relatively strong economic prospects for Canada as leading indicators show early signs of positive performance. This positive shift is mainly market driven. Low interest rates have been propping up demand despite lingering external pressures. As consumer confidence continues to grow, we are expecting a more robust real estate industry. Home prices will continue to rise as activities in real estate markets will continue to heat up. The market is expected to reach its equilibrium with the slow decline in affordability. This unfolding scenario is mainly due to higher price levels of homes and the anticipated increase in interest rates by the second half of the year.
Most real estate markets in Canada are riding at the crest of a strong finish last year. The lowering of borrowing cost has spurred consumers to buy. This has driven demand in most parts of last year. This vibrant atmosphere in most markets in Canada has pushed economic activity levels to a new high. The increasing demand, coupled by the seasonal dip in inventories in most real estate markets, will continue to push home prices up in the early part of this year. As soon as the market makes the adjustment and supply reaches normal levels, demand will ease since homeownership will be moderated by the increasing price levels.
