Canada’s housing market looks promising this year as a few key trends continue to impact real estate in the country. One major trend is foreign buyers’ demand for luxury real estate, especially in Vancouver where 85% of luxury real estate transactions were from foreign investments. Another trend is the upsurge of technology hotspots in Canada’s major cities. Google has plans to construct an innovation offshoot in Toronto, and large video game companies have opened their doors in Montréal. This tech expansion will create a need for housing for tech employees, executives, and investors. These trends have added to the real estate demand in Canada and are driving up the property prices, a pattern that is expected to continue in the coming year.
- The outlook for Canada’s 2018 housing market is positive as the country continues to have a high demand for real estate, especially luxury properties for foreign buyers.
- The influx of tech hubs in Canada’s major cities will create a housing demand for tech executives, employees, and investors.
- The new mortgage stress test rules established this year are a challenge for new millennial homebuyers who are receiving support from their parents when buying new homes.
Last year was hot for U.S. real estate. Moving into 2018, some uncertainty remains as to whether this streak will continue, especially in light of the new tax law. However, the National Association of Realtors predicts an expected 3.2% rise in home prices, a slowdown after 2017’s 5.5% year-over-year climb, due to continued low levels of inventory. The outlook is markedly positive for not only the U.S., but for our neighbors to the north as well. Here are 10 trends every broker should know about that are currently at play in the Canadian real estate market.
Low supply keeps demand high: Demand is high among domestic and international buyers of Canadian residential real estate in major cities, specifically in the luxury market. This trend is one that is expected to continue, with a rise in home prices over the coming year projected.
The epicenter of the luxury market real estate in Canada: The picturesque west coast city of Vancouver saw a record high in asking prices last year, reaching $35.8 million CAD, higher than price points in any other major metropolitan area in the country.
International buyers dominating the luxury property segment: Foreign buyers are heavily weighted in the luxury segment in Canadian real estate. In Vancouver alone, foreign investment accounted for 85% of luxury real estate transactions in 2017. Moving to the east coast, Montréal saw international buyers comprise 30% of luxury transactions. The majority of foreign real estate investment in Canada is coming from Asia, followed by European countries such as France, Italy and Germany. It’s crucial for brokers in the luxury segment to make sure they’re reaching feeder markets in Europe and Asia with their marketing in order to capture international clientele looking to purchase in Canada.
Canadian Real Estate News: View the original article at Forbes