Canada Real Estate Statistics
Housing price of all significant metropolitans of Canada was subdued in 2019. The price rose a mere 1.95% during the previous year, but actual was 0.32% adjusted against inflation, according to data published by Teranet-National Bank of Canada. The downtrend is persistent for the last three years; 12.25% in 2016, 8.92% in 2017, 2.51% in 2018. The housing price is expected to found a support level and projected to be rebound. Construction has stalled, inventory is low, and demand is rising, partly to government policy and partly to immigration.
The below-listed figures are showing signs of revival.
- The average gain of apartment sales is 3.35% in 2019(adjusted 1.05% inflation rate)
- Price of the home of one storey climbed by average 3.32% in 2019(0.97% inflation-adjusted)
- Two storey, family house price enhanced by 3.09%, on year to year basis.
Out of eleven Canadian metropolitans, Ottawa witnessed sharpest rise 7.38%, followed by Halifax (7.35%), Montreal (6.37%0, Hamilton (5.93%), and Toronto (4.48%). The home price index of Quebec, Victoria, and Winnipeg remains downcast.
Reasons for the expected rise
Previously the Central Bank had taken preventive actions to curb speculative activities in the housing sector, by increasing mortgage down -payment and reducing amortization period. This resulted in blockade for the infusion of fresh capital in the segment. The dynamism of the market is slowly shifting towards equilibrium, as demand is growing, inventory is low, and construction is moribund. In 2019 new projects fell by 2%, and completion chop by 6.5%.
From December 2019, the turnaround is evident, home sales increased by 22.7% year to year basis from 19% in December 2018, according to data published by CERA. The upswing is across Canada; total sold units is around 486,800 in 2019, up by 6.2% on year to year basis. The average price of a home is around CA$500,200 per dwelling in 2019, which is higher 2.3% from an earlier year. British Columbia and Ontario had the most vivid, thriving housing market, with an average cost of CA$699,300, and CA$606,400 respectively.
The GDP of Canada was estimated to grow by 1.7% in 2019, compared to the growth rate of 1.9%, and 3% in 2018, 2017 correspondingly. Two detrimental factors are besieged condition of the oil and gas sector, and the US –Canada trade war. Bank of Canada projects a growth rate of 1.6% in current fiscal, and 2% in 2021.
Home price is expected to outperform other sectors, as the demand is growing, twinned with limited supply. Though the boom is not likely to be uniform across Canada, investing in Abeja District Condos holds golden potential.