festival condos vaughan.What are the effects of Canadian real estate? Real estate in Canada, to understand the situation of their country, and for many Canadians, housing is the financial asset of their life, the Canadian housing market has slowed down in recent years, there are a lot of news worried about the Canadian housing market.Please Visit: festival condos vaughan to Get Your VVIP Registration Today!
According to analysts, the Canadian housing market does have a tendency to have cyclical ups and downs, while the Canadian housing market will gradually decline moderately in three years. There will be about 2% of real estate in 10 years, and house prices should rebound to 3.5% in 2015.
In the long run, household-related factors have little impact on real estate prices, while macroeconomic factors have a greater impact. Variables considered influential include factors such as income and economic growth, population and household formation.
“low labour force participation and productivity growth will dampen the strength of Canada’s economic growth. We expect real economic growth of about 2% a year up to 2021. In nominal terms, this means about 4 per cent of income and economic growth. Trends in personal income are particularly important, and this variable affects overall housing affordability. ”
Population growth is a bellwether of economic growth and overall housing demand. Statistics Canada predicts that the population will grow by about 0.6% a year by 2030, down from the current 1%. The demand for housing is driven by population growth. If the pace of growth slows down, so should the growth of property prices.
However, slowing down the pace of population growth and household formation may not necessarily put pressure on prices unless housing supply is adjusted to meet demand, as builders and developers will adjust the pace of construction to keep pace with basic demand.
Borrowing costs also have an important impact on house price trends. Interest rates cannot remain at current low levels indefinitely. “for the Bank of Canada’s target overnight interest rate, while the more neutral interest rate is about 3.5%. The neutral interest rate for five-year fixed mortgages will be about 7%. This forecast assumes a spread of 1.5 percentage points between the five-year Canadian government bond rate and the normal five-year fixed mortgage rate. As economic growth slows and inflation is more stable than the average over the past 30 years, both neutral short-term and long-term interest rates are likely to be lower. ”
There are different trends in the property market, economy and population. Between 1980 and 2012, nominal annual house price growth in Canadian cities was 4.1% of St. John’s and 6.4% of Vancouver’s, while the average was 5.4%. According to estimates, the property market can be divided into three categories: above average, in line with average and below average. House prices in the above-average category have always been growing well, and this trend should continue because of better economic growth and a large number of immigrants. In the case of Vancouver and Toronto, land restrictions may make it difficult to adjust supply. In line with the average are Lezanne, Saskatoon, Winnipeg and Ottawa. In the long run, the population growth of the first three has little support for the property market, and Ottawa should be better in this respect. Halifax and St. John belong to the below-average category, and the trend of population development is flat and not high in the past.
Taken together, Canadian real estate will have about 2 per cent of the year in 10 years, while the long-term level of price growth will be 3.5 per cent a year. Canada faces a number of structural changes, including an ageing population and an increasing reliance on immigration for population growth. There is no agreement on the relationship between these trends and housing demand. The difference of regional economic climate means that some big cities will have larger real estate.