Are you thinking of buying a home in Canada? You might want to wait a few years. According to some economists, home prices in Canada are likely to continue falling until 2023.
So if you’re not in a rush to buy, it could pay off to wait for the market to bottom out. In the meantime, keep renting or living with your parents – it’s cheaper than owning a home right now!
The report cites several reasons for this, including high household debt levels and stricter mortgage rules
The latest economic report shows that the housing market in our region has been unusually sluggish this year. This could be due to a number of different factors, but there appears to be two primary causes. Firstly, households have increasingly taken on debt, making them less able to commit to large financial purchases such as mortgages or home improvements.
Additionally, new mortgage rules have come into effect which make it harder for potential buyers to secure financing in a timely manner and without jumping through additional hoops. These two factors together appear to have had a significant impact on the housing market in our region during this time period.
Expert Robert Kavcic’s prediction for the Canadian housing market has been underpinned by recent data from the Canadian Real Estate Association’s MLS Home Price Index. The seasonally-adjusted benchmark price of a home had fallen to $756,200 in October from its February peak of $840,000, representing about a 10 per cent reduction.
However, according to Kavcic, this is only half way towards BMO Capital Markets’ official call for a 20 per cent decline in the national benchmark home price. Though home prices were still softening in November due to the pandemic, it appears that markets are waiting on a recovery before any material appreciation is seen again.
It looks like Canadians can expect both sales demand to remain low and house prices to decline further into the start of 2023. According to a recent RBC Economics report, this likely will occur as long as the Bank of Canada halts its recent rate hiking campaign and keeps its overnight rate at 4.25 per cent.
However, other organizations such as RE/MAX Canada remain more positive, suggesting that the average real estate prices could still experience a moderate dip of only 3.3 per cent in 2020. Despite these contrasting viewpoints from various research sources, it will be interesting to observe how market dynamics play out to shape the Canadian real estate landscape over the next year.
This is bad news for homebuyers who were hoping to enter the market soon, but it’s good news for renters
The news that the cost of housing is on the rise, though unwelcome by hopeful homebuyers, is a welcome relief to those who rely on rent. With the average housing prices increasing significantly in 2018 and expected to continue increasing, renting could be a milder alternative to entering the market.
For those considering purchasing, this is an important time to weigh their options carefully and consider their budget. The decision they make now could determine their level of financial security tomorrow.
If you’re thinking of buying a home in Canada, you might want to wait a few years until prices start to stabilize again
If you’re in the market for a house in Canada and want to get the best bang for your buck, waiting a few years might be the way to go. Home prices have been steadily increasing since 2018 and continue to outpace salary growth, making affording a home more and more difficult.
Unfortunately, it doesn’t look like these soaring prices will settle down anytime soon as demand from both foreign investors and first-time buyers continues to strengthen. However, eventually they are likely to stabilize and waiting could save you some serious cash. With interest rates expected to remain low in the near future, now might be an ideal time for aspiring homeowners to start saving and preparing for when buying a home may be more within their grasp.
Also Read: Skills That Can Earn You Huge Amount of Money 2023
In the meantime, focus on saving up as much money as possible so you can afford a down payment when the time comes
Saving up money for a down payment on a house can be daunting, but is definitely possible with the right plan in place. Start by making sure you have an emergency fund of 3-6 months of your expenses saved up first. Then, set your sights on reaching your down payment goal by budgeting to save as much money as you can each month.
Investigate good interest-earning accounts and take advantage of any available 401K matching programs that come with your job. Consider other additional sources like selling items online to generate additional income and utilizing bonus funds from work or tax refunds to boost your savings account. Finally, focus on maintaining a strict no-spending policy for at least the next few months to reach this goal quickly. Taking these proactive steps now will save you time and money later on when it’s time to purchase a home!
Home prices in Canada are predicted to decline for the next few years, so if you’re thinking of buying a property, it might be best to wait until prices have stabilized again. In the meantime, focus on saving up as much money as possible so you can afford a down payment when the time comes.
Home prices in Canada are predicted to decline for the next few years, so if you’re thinking of buying a property, it might be best to wait until prices have stabilized again. In the meantime, focus on saving up as much money as possible so you can afford a down payment when the time comes.
