Move Over, Toronto: Ottawa Is Canada’s New Hot Housing Market
The real estate frenzy that infected Toronto and Vancouver is clearly capable of spreading to other cities.
Looking to escape Toronto’s crazy housing market? Ottawa may be the answer – but you better act quick. According to the Royal Bank of Canada, Ottawa is experiencing rising prices, supply shortages, bidding wars and growing interest from foreign buyers. Canada’s capital now has a higher share of foreign buyers than Toronto. But it’s not just foreigners moving to Ottawa. People in Toronto who are fed up with that city’s high cost of living, are packing up and moving to the capital. Realtors are also noting a growing shortage of supply and homes staying on the market for shorter periods of time. It’s clear the real estate frenzy that has overtaken Toronto and Vancouver is spreading to other cities across Canada. Is Ottawa an option for you? The right real estate agent can help you understand all of your options.
Toronto Housing Sales are Off To Weakest Start Since 2009
Temperatures may be on the rise in Toronto, but housing sales are dropping. In hopes to tame the city’s booming home prices and debt levels, the government implemented tougher mortgage qualifications and rising interest rates. However, these regulations are pushing buyers out of the market. According to The Toronto Real Estate Board, April was the worst month for home sales in Toronto since 2003. In the last four months, home sales had the fewest transactions to start a year since 2009. Jason Mercer, TREB’s Director of Market Analysis states, “market conditions should support moderate increases in home prices as we move through the second half of the year, particularly for condominium apartments and higher density, low-rise types.” Will Toronto’s housing market continue to cool down? Or will it rise back to the top? Is this the right time for you to be considering buying a home in Toronto? A real estate agent can help you decide!
Vancouver home sales fell to 17-year low in April
Ottawa’s real estate market may be on the rise, but Vancouver appears to be more in lockstep with Toronto’s dramatic decline when it comes to the number of homes changing hands. The Real Estate Board of Greater Vancouver reported that home sales were down 27.4% from April 2017, and 22.5% below the 10-year average – resulting in the worst April since 2001. However, despite dwindling home sales, prices moved up 14.3% from the same month last year and 0.7% from March. With prices continuing to rise and vacancy declining, will Vancouver home sales continue to drop?
Roommates aren’t just for students anymore. Residents of Vancouver are finding innovative ways to meet their housing and social needs. A popular trend in cities such as San Francisco, Montreal and Toronto is collective housing. Collective housing is where several people live together not only to share a space, but to create a community where resources and work are shared. Jen Muranetz was drawn to the concept of collective housing to not only split the cost of living, but to find housemates who shared her vision of a home. She and four other adults currently share a home in east Vancouver and she says, “their situation mirrors that of a family.” The Collective Housing Society in Vancouver includes about 20 homes in various neighborhoods and includes everyone from students to working professionals, families to seniors. With property prices continuing to rise, collective housing may become increasingly popular across the country. Would you consider collective housing as an alternative to owning your own home?
Is It The Right Time To Invest In Luxury Real Estate?
Thinking about buying that oceanfront vacation property? You may want to reconsider. After the Great Recession in the U.S and the global credit crisis in 2010, housing prices have soared to new highs in cities worldwide. However, there is little evidence to show that demand will push luxury prices higher in the future. According to some real estate analysts, many cities are already seeing plateaus and corrections in light of rising interest rates and new government regulations. Zurich-based real estate strategist Thomas Veraguth says, “it still makes sense to invest in real estate for diversification in the portfolio, but the market timing is less good than it was a few years ago.” Those willing to hold onto property over the long run might just be in luck, but analysts caution that if you’re looking to profit from a quick investment, you might not want to invest in luxury real estate just yet. The right real estate agent can help you think through all of your investment options.