Most recently, in the Toronto Star I noted an article by George Carras, president of RealNet Canada. He comments about the need for a strong market. I totally agree with him, versus others who feel that there’s levelling off in the market or that the market is due for a correction.
Some industry pundits predict a drop in prices of three to five per cent, and that mortgage rates will increase substantially.
This is highly doubtful in light of Canada’s overall strong economy and the incredible strength of our dollar in the world economy.
Prices will probably continue to climb for low-rise single-family homes. Perhaps because of the amazing growth of high-rise condos in most large cities, that market will face some adjustments due to an over-abundance of inventory.
Carras comments that personal incomes and low mortgage rates have been a strong catalyst in shaping the housing market. My feeling is that with immigration continuing to contribute to the larger cities’ growth, the demand for housing will continue. Compared to prices in, for example Shanghai, where an apartment can rent for up to $20,000 a month, our housing/rental market is a bargain to newcomers.
The uniqueness of seniors 55+ either downsizing or moving to retirement communities adds to the inventory in all areas of Canada. Forty-five per cent of North America’s population is 55+ and they’ll be the beneficiaries of thousands of dollars of inheritances. That fact alone will add to the demand for various types of housing in Canada.
The RealNet New Home Price index shows the average price for new condos at under $438,000 and new low-rise homes at $625,479 in the GTA, still affordable compared to other world prices.
Since I’ve been around a lot longer than a lot of the readers of REM, I can attest to the fact that as long as there’s a demand for housing and the supply can keep up with it, then we’ll all prosper!
Now for my 2013 resolutions:
1. Lose weight
2. Read more
3. Laugh more
4. Love my kids more
5. Try to remember 1-4!
Have a great 2013!
Stan Albert, broker/manager, ABR, ASA at Re/Max Premier in Vaughan, Ont. can be reached for consultation at [email protected]. Stan is now celebrating his 43rd year as an active real estate professional.