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From Healthy To Sick: A Look At Canada’s Real Estate Markets in April 2013

 

If you’re thinking it’s the right time for you to buy or sell a house, make sure you’re fully aware of how Canada’s real estate market is doing. Since the global economic recession hit, Canada’s real estate market hasn’t been as strong as it used to be; while there are fluctuations, predictions for the future are somewhat uncertain. In fact, this spring the real estate market is at its weakest. While you could use the help of mortgage brokers  to find best mortgage rates,, Canada isn’t the home of the healthiest real estate market right now.

 

How the Real Estate Market Is Performing In Canada Now

 

The real estate market has only slowed down since the spring of 2012. While the market appeared to strengthen in January, it weakened again in February and has continued to weaken in the months following. The reason for this cooling is mostly due to stricter lending and borrowing rules implemented by the government as well as continued economic struggle.

 

From this time last year, close to 70 percent of home prices have dropped by more than 10 percent. In fact, it is predicted that the market will continue to drop, reaching a total decline of about 3 percent by the end of 2013. A decline of 5 percent is likely over the next 5 years.

 

While prices are low this spring, experts don’t think that prices will continue to drop at such a steady rate. There are factors that influence price fluctuation. For example, springtime is a time for change; interested buyers are more likely to make a purchase between March and July than in the winter and early spring months. Immigration is also a key factor for stabilizing the market; with between 250,000 and 300,000 immigrants entering Canada each year, these buyers are integral to the market, especially in Calgary, Vancouver and Toronto.

 

The Real Estate Market Province By Province

 

That being said, the real estate market isn’t the same across Canada. New Brunswick, Ontario and British Columbia are three provinces that have seen the greatest declines in average housing prices this month. Even cities within provinces don’t see the same results. Vancouver is considered the “odd one out” when it comes to Canadian real estate: Vancouver’s prices have dropped by 29 percent from February 2012 to February 2013. If this city were taken out of consideration, Canada’s real estate market would actually have increased – albeit very slightly – in the last year.

 

While this month has been tough for Real Estate Agents, Canada and its real estate market aren’t going to be slow forever. There are predictions that the market will pick up again in 2014; it’s predicted that the rebound could be as great as 10 percent. If you’re looking at buying or selling Real Estate now, make sure you’re fully aware of these market predictions and make sure you’re aware of variations between provinces and cities.

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