Canada is the second-best country to live and work in the world. Ask any resident in Canada if you don’t believe that. The country holds the position of 14th largest economy and has a minor unemployment rate than other developed countries. Weighing on many different factors, most homeowners believe that buying a house in Canada is a wise resolution for a long term investment, find out more here for a better opinion in the canadian real estate market.
However, the situation has been changed in 2019. After the Covid 19 pandemic, the Canadian economy has been badly impacted like other countries in the world. The economic decline covers almost all divisions, including real estate sectors.
It is found in a study that the real estate sector of Canada has experienced the lowest sale in history in May 2020. In this global crisis, the buyer as well as the seller is in a dilemma because the economic situation is still unpredictable.
Investing in a property is the biggest deal of someone’s life. A buyer should decide about having a house after long thinking.
Should you buy a house in disastrous 2020? Let’s read what experts are saying.
TheIimpact of Covid 19 on Real Estate
Toronto , Vancouver and Montreal are two cities known as the hotspot of real estate. But, house price dropping occurs there as well and it seems to be continuing. Experts have detected several points for the price drop. Due to Covid 19, either a large number of people have lost their job, or their income has been lower. This has a big effect on buyer depletion.
Economist Abhilasha Singh published a report on Moody’s Analytics regarding these issues. Based on his opinion, a lower interest rate even is not sufficient for saving the housing market of Canada. He predicts a 7% price drop in the housing market by 2021.
Fortunately, Montreal has had better performance despite the disaster and it likes to be continuing. This is an exceptional case since Ottawa has better population growth and economic stability.
On the other hand, Montreal has experienced a sturdy price growth before the pandemic. It has happened due to several factors. Based on reports, Montreal is one of the bigger focal points of immigration. Besides, the underlying supply and demand have boosted the price flow.
If we notice the type of residence, you should notice some stunning scenarios. The demand for a single home is rising and expected to continue. But, the condo market is falling slowly and losing rental prospects.
A report by StatsCan says that condo prices seem driving down because of the decline in immigration.
Undoubtedly, the price of houses in Canada has fallen in recent times. But, if you ask about an accurate forecast, it has no straight answer. Based on the current situation, it is quite tough to predict. Experts guess that 2021 will likely be the worst year for the real estate sector. But, the downfall is expected to be recovered in 2022.
Published by Shahbaz Ahmed