Deciding to put your valuable money in real estate is always a worthwhile investment. Every New Year people get to wonder if the real estate market would certainly crush before the end of the year. 2018 set on quite fine and the real estate market began on quite a firm ground. This was mainly because of the developing prompt that was set in the summer period of 2017, which witnessed an increase in the number of listings that in return prompted the increase in pricing of the Canadian property markets.
2018 started off with lenders qualifying for new borrowers and those negotiating with a newly acquired lender qualifying for a mortgage but using new set guidelines. With all these, it means that 2018 will become more stable.
2018 will see a stable Canadian Real Estate Market
Canadian Real Estate market is set to enjoy a regular rate of appreciation and minimized risks of prices. Another reason that makes the real estate market more stable this year is the new listings-to-sales ratio that makes the general property markets more than 50% stabilized. Also having a look at the months of inventory you see that the Canadian market is leveling off because these months represent the liquidation of inventories proportionately to the current sales activity rates.
Other markets are still hot in business
Despite the many factors expected to cool down the activities in Canada like the rise in the interest rates from 2017 and the changes in mortgage regulations, there are some markets that are still sizzling. Some markets across Toronto stood at a better percentage during the end of 2017 compared to the other months. This has made most willing buyers to step up their rates of purchase before the rates continue to rise.
General Canadian Real Estate Market Analysis
With the decrease in activity as the market ushers in the New Year 2018, CREA (Canadian Real Estate Association) predicts a drop of 1.4% if the national average prices of houses. Although with this fall, the market variation wouldn’t be felt because of the market differences in the other places. With this decrease, it means the market is volatile and requires increased sales activities and discovery of viable land for construction. The good thing expected in 2018 is that the hot regions expected to have increased sales activities are largely expensive and there are other regions flat-line rates not expected to disturb the market intensely, leaving the section expected to bring a drop easily controlled and contained not to affect the market intensely.