🏡 The Canadian housing market is making a sizzling comeback, turning the tables on those who predicted a slump, according to a report from Desjardins. The market took a turn for the better in early 2023 when the Bank of Canada pressed pause on increasing interest rates - the typically scary beast for homebuyers. By April, home sales were skyrocketing, and they kept flying high through May.
Now here's the catch, there are fewer houses for sale, which is flipping the market into a seller's paradise and pushing prices sky high, especially in the big cities. 🏙️💲
The Desjardins team think this boom isn't going anywhere soon, thanks to some key factors. One biggie is population growth, helped along by a wave of new immigrants and temporary residents. Plus, our job market is doing well, and Canadians have been saving big during the pandemic. More money + more people = more home sales. 🌎👪💼💰
But don't break out the party poppers just yet. The Bank of Canada has been hiking interest rates, and that plus inflation could make potential buyers think twice, as borrowing gets more expensive. Plus, the full effect of past interest rate hikes hasn't even hit us yet, especially for those with certain types of mortgages.
Adding fuel to the fire, we've got a housing supply problem. Even with interest rates rising, home construction is going strong, but the focus has been on condos, leaving a gap in options like townhomes, duplexes, and smaller apartments. This is pushing prices even higher, and government policies aren't giving us a break. 🏗️🏘️💸
Across the country, the housing scene varies. BC and Ontario, especially Vancouver and Toronto, are seeing big price increases, while provinces like Alberta, Saskatchewan, and Manitoba are becoming hot spots for young Canadians. But even in affordable regions like the Atlantic provinces, prices are soaring. And in Quebec, even though there are slightly more houses for sale, it's still a seller's market. 🗺️
So what's the final word? Desjardins thinks the housing market's hot streak will continue, making homes less affordable. On one side, strong demand due to population growth, a good job market, and savings will keep the market hopping. But on the other side, higher interest rates and limited housing supply might cool things down a bit. So, hold onto your hard hats, it's going to be an interesting ride! 📈📉🎢