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5 YEAR Variable 2.10%*
Updated February 16th, 2017
4 Factors That Will Determine Canada's Real Estate Market In 2016
Huffington Post ~ January 22nd, 2016
Other than the weather, 2016 has not been particularly kind to Canada.
The Loonie is the lowest it has been in 15 years, a barrel of gas is trading for less than $30 and Canada's National Men's Junior hockey team didn't even reach the semi-finals! Compare these factors against the rising U.S. greenback and you get one gloomy economic forecast. However, there is one section of our economy that seems to be unaffected, as the real estate market is showing little signs of slowing down on a national level.
Despite the troubling forecast, don't expect any price breaks in Canada's real estate market for 2016. TREB is predicting an increase in the average price of a home to rise by nearly 10 per cent, a number skewed by big markets where demand outweighs supply like the GTA.
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The Canadian housing market is coming off a truly remarkable run, and RentSeeker is here to help you prepare for the road ahead. These will be some of the biggest factors affecting the housing market in 2016 and must be considered by anyone who is currently in or thinking about entering it.
Oil prices have hit lows we haven't seen in decades as the price of a barrel plummeted more than 60 per cent since June of 2014. Currently trading for less than $29 a barrel, the 'bottom of the barrel' seems more like an endless pit.
Certain oil producing countries and companies have flooded the market with a surplus of supply, driving down the cost of crude. As a result it's been a downhill slide for the Canadian energy sector that plays a huge role in the national economy.
The oil, gas and mining sector accounts for more than a quarter of the national GDP and many workers have been laid off as Canadian oil production has come screeching to a halt.
When the energy sector is in good shape, so is real estate, particularly in Western Canada. However, the market in British Columbia is soaring as house prices in Vancouver continue to skyrocket, although Alberta is definitely taking a hit after experiencing numerous years of growth.
Click here to read the full article.