Two-thirds of the nation’s housing markets are tilted toward sellers, according to a report from the Canadian Real Estate Association (CREA). Demand is not keeping up with supply, so this may be the prevailing trend for some time. Toronto and Vancouver are more-populous markets, but this trend is prevalent throughout Canada, causing home prices to increase.
Under current conditions, sellers who bought even five years ago would benefit from this tight housing market.
After the Coronavirus pandemic turned home-buying trends upside down, supplies ran out. Although this may have been expected in major urban centers, it came as a shock to small towns and rural communities, which already had limited inventory.
The For Sale signs erected on front lawns benefitted from this, of course.
If you bought a home in 2009, you’ve probably already seen a significant return on your investment. At the bottom of the housing downturn, the average residential price was under $300,000. Some properties and markets are defying averages, so perhaps your ROI is even more significant.
With intense bidding wars, desperation has become a common feeling among many homebuyers. Growing number of families are trying to increase their odds by abandoning certain aspects of purchasing a home. However, in seller’s market, the seller controls the situation and buyers are working and abiding by the seller’s terms and conditions.
The housing shortage will not be resolved overnight. It will take several years before supply catches up, Scotiabank says. With 1.2 million newcomers arriving in Canada over three years, demand is not subsiding. The chronic shortage will put upward pressure on prices and reduce affordability.
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