What Does The Future Hold For Canada’s Housing Market?
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The unprecedented circumstances that Canadians have found themselves in have made it hard for experts to predict just how certain markets will respond to the pandemic, and how they will fare in the future. With some industries coming to an abrupt standstill, the impact on the global economy has been devastating, but there is hope that Canada’s housing market will not only survive the pandemic, but thrive:
What were the predictions for Canada’s 2020 housing market?
Before the impact of the crisis was really felt, predictions within the housing market were being made for healthy gains in sales activity, due mainly to an increase in consumer confidence and a rising housing demand driven by millennials and young couples searching for their first home.
As we entered March, local markets were looking exceptionally healthy and it was thought that nothing could bring the surge of interest down, not even something as potentially harmful as a global pandemic. With home sales skyrocketing, many regions were seeing figures up from their previous sales at the same time last year, and it wasn’t until the latter half of March that things began to take a turn for the worse.
What help was offered for Canadian homebuyers, and what is the situation now?
During the month of March, the Bank of Canada made cuts to lending rates, helping to make them the lowest they’ve been in many years. Other banks quickly followed suit, but the reductions were short-lived and amid the turmoil of the pandemic, banks were forced to raise their rates again.
Looking to the future and the gradual returning of some sense of normalcy to global and local economies, experts are confident that lending rates will be lowered again. This should give Canadian homebuyer’s access to lower rates on variable mortgages, and could see them being able to borrow more than they could have before the health crisis.
There are currently several other measures being offered by federal, provincial and municipal governing bodies to help homebuyer’s during these difficult times, and a call to your local, trusted mortgage broker can help you navigate the murky waters of the housing market.
The final word from those in the know:
Real estate experts predict that while the pandemic has undoubtedly scarred the housing market, it will be a temporary glitch and that demand will soon return to help buoy the economy. Mortgage brokers have been keeping themselves up to date with all the latest developments in the housing market, and while you may not be able to visit their offices in person, they are just a phone call or email away.
To make sure that you’re kept in the housing loop until the market is back in business, keep in touch with your mortgage broker, who will have all the latest advice and guidance for you.