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Key Takeaways from 2021 Report on Canadian Housing Market Real Estate

November 1 2021

It has been more than a year and we all are still held captive by the COVID-19 pandemic. Our life has been on hold since then. The pandemic has not just affected our personal lives, it has impacted various sectors harshly. There are several industries in Canada fighting for survival. However, we cannot say the same for the Canadian Real Estate market. Despite one of the worst economic crises across the world, the sector has shown growth. Statistics show that the housing sector remain quite active during the last 2 years across Canada.

Major Factors Responsible for the Growth

  1. Pandemic has forced people to work from their homes. The mind-set of people has changed with the lifestyle changes. People are spending a maximum of their time at home and are getting inclined in moving to suburbs, away from the fast life. The pandemic has changed perspective and brought people closer to their roots. They are looking for bigger and comfortable houses where they can live a healthier life and work efficiently without any issues. It is expected that the trend of moving outside the city will continue for some time.
  2. Despite an increase in real estate prices, people were still investing as their saving capacity has increased during the pandemic period. As there was no place to go, no shopping, no travel anything, people were not making unnecessary spending and were saving more.
  3. The Canadian government also started income relief programs and has lowered interest rates resulting in an increase in customers’ purchasing power. At the start of 2020 after the economic crisis, the bank of Canada lowered its lending rate to 0.25% which is still the same. It became easier for consumers to afford mortgage rates.

New Homes Prices in Brampton

Prices of new homes in Brampton have been rising upwards and in Spetember’21 the rates touched have never been this high.  Homes in Brampton have been sold on an average price of $1,072,988 in Spetember’21. This has shown increase of 1% from last month and 24% approximately from last year. Such an increase in the prices of homes in Brampton has impacted sales. The transaction has decreased by 3%as compared to last month i.e. August’21 and 25% as compared to last year.

In Brampton, prices for any type of home have been increased. Be it detached or semi-detached type of homes in Brampton, prices of all the types of the home have been at the height. Prices of detached houses showed a growth of 2.85% and semi-detached has shown an increase of 2.0% in a month. Average prices of Townhouse in Brampton have also increased and showed growth of 4.65% since last month.

Major Takeaways

  1. Canadian real Estate sector has broken all the past records and touched new heights in 2021 despite the pandemic, especially in immigrant-dominated cities.
  2. If we go by statistics shared by the Canadian Real Estate Association average home rates in Canada are predicted to increase by 16.5% annually.
  3. After the pandemic, a switch in lifestyle choices has increased the movement of residents towards suburbs or outside the city.
  4. Canadian government started various employment relief programs during pandemics to give economic support to citizens.
  5. Lending rates of Canadian banks were dropped significantly increasing purchasing power
  6. Increase in demand of first-time buyers
  7. It is predicted that the real estate sector will keep its pace as the economy is starting to recover financially.

After COVID 19 has impacted market conditions and the country’s economy terribly and it has become difficult to predict anything with surety. However, the real estate sector in Canada has shown remarkable growth and the future seems promising. Sector experts and researchers are confident that the trend will continue for the coming months. It is difficult to predict long-term real estate market trend as once the situation come under control the borders will open and immigrants will be able to travel abroad. This will impact the real estate market adversely especially in immigrant populated cities of Canada. It will affect Canada’s economic growth. The vaccination drive is getting pretty strong and there are chances that the economy gets better resulting in changes in future interest rates.    

MLS (Multiple Listing Service) Statistics show that the average cost of a home in Brampton is $1,086,502. MLS statistics benefit both sellers as well as buyers. It is a system used by Canadian Real Estate Boards / Associations. Real estate agents come together and develop a database by listing out all the properties ready for sale. This database is named MLS Listing. Any broker can access this database and find available properties in their respective localities.  

While purchasing, selling, or investing in a home in Brampton, it is good to consult a real estate firm that can guide you in the matter. It is wise to have a safety net against any type of financial loss. One of the top real estate agencies across Brampton is Team Ash Tewary. They focus on creating wealth for their clients using the real estate sector. They can help you in getting the most suitable deal when it comes to selling or purchasing a home in Brampton.  They have a team of awarded real estate agents who are well aware of the latest news related to the sector. They have their own set of researchers who focus on analyzing market trends and help you in cracking the most profitable deals in the real estate market. They put effort and helping their clients in cracking deals that are difficult to grab. They are specialized in understanding the local market situations and thus are the best option when you are looking for buying, selling, or investing in real estate in Brampton. You can easily select the location, type, and specifications of property at the Team Ash Tewary website and choose the most suitable deal as per your budget. 

 

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