Will The Canadian Housing Market Crash??
Updated: Nov 30, 2020
The Canadian housing market has been one of the #hottest #asset categories for many years. Housing prices have been extremely strong as Canada’s #economy and #population have seen impressive growth numbers. Canada support #immigration unlike it's USA neighbor. immigration
When the coronavirus pandemic hit back in February, though, many expected the Canadian housing market to #crash. It was a scary time for many.
This wasn’t just Canadian investors and analysts who thought this either. The Canadian Mortgage and #Housing #Corporation (#CMHC) even predicted that the housing prices would fall by 9-18% as a result of the financial strain due to the pandemic.
However, since the real estate market effectively opened back up after the shutdowns, pent-up demand has actually driven housing prices slightly higher. Thank the heavens!
It’s still early in our recovery, so it’s too soon to know for sure that the Canadian housing market is in the clear. However, there are several reasons to be bullish on Canadian housing.
Why Canada’s housing market won’t crash
The biggest reason why the #Canadian housing market hasn’t crashed yet is thanks to the Canadian government.
When the #coronavirus #pandemic first hit, many Canadians were forced to stay home (some even lost their jobs), and the conditions were prime for a massive economic disaster. Luckily, the Canadian government quickly introduced CERB and other stimulus measures to keep the economy propped up.
#CERB, #CRB and its new replacements getting money in the hands of Canadians has undoubtedly been the biggest factor in the #Canadian #housing #market remaining resilient.
Going forward, however, there are many other factors. Record-low interest rates will continue to make it extremely cheap for Canadians to borrow. Pent-up demand will have to enter the housing market sooner or later in addition to less supply likely being added in the short run.
There’s also the chance that #suburban markets could see even bigger #price #gains as more Canadians want to move out of city centers. Let's face it..we all need more space for our art and music projects and whatever creative skill God gave you!
One of my favorite up and coming areas is #NIAGRA FALLS. WELLAND AREA. The new Canada Games will be developing the area to prepare it for the games which means brand new sports faculties will be made. The New #Canada's #Wonderland will also be built here in the future. Plans are being put into place to develop the new Canada's Wonderland as we sleep. Canada we LOVE YOU!