Canadian Real Estate: Is Your Home Making More Than You Do?
Monday Apr 05th, 2021
How hot is the Canadian real estate market right now?
It is skyrocketing so much that the Canadian Real Estate Association (CREA) is projecting that the housing market is poised to post record highs again this year. According to the association, more than 700,000 properties will change hands in 2021, up from 551,262 last year. The national average home price will surge by an annualised rate of 16.5 per cent to $665,000 this year. All this is because demand is exceeding supply at a record-breaking pace.
At this point everyone knows how far the current monthly sales numbers are from historical norms, and that they have been setting record after record for eight months now.
The new forecast comes after CREA confirmed that residential sales increased 39.2 per cent year-over-year in February, and prices advanced 25 per cent from a year ago to $678,091. By now, it is clear that your home – detached, semi-detached, townhouse, or condominium – is earning more than you. So says a new report from a leading financial institution.
Whether you currently own a townhome in the core of downtown Toronto or reside in a semi-detached house in the picturesque Okanagan Valley, the soaring value of your humble abode is making you wealthier than working Monday to Friday.
The BMO study, titled “Your House Makes More Than You,” concluded that housing prices are rising faster than family income and total annual income. While this is not prevalent throughout the entire Canadian real estate market, it is true for all of Ontario. Normally asset prices start to raise red flags when they consistently outrun growth in underlying income or earnings.
Overall, Canadian homebuyers – first-time, move-over, move-up, and out-of-town – are residing in a housing market that has its pros and cons. The most important thing is to save up, be prepared, do your due diligence, and have an impeccable team of licensed real estate agents on your side to help you confidently navigate this complex COVID-19-impacted real estate market!