The Canadian housing market isn’t as cool as it might seem – via BuzzBuzzNews + Blog

3 charts that show that the Canadian housing market isn’t as cool as it might seem

– via BuzzBuzzNews + Blog

January saw Canadian home sales plunge 14.5 per cent month-over-month, as the market adjusted to a new mortgage stress test and an interest rate hike. But while the drop might make it seem like the market is cooling off in the new year, other numbers tell a different story.

From rising home prices in BC to a surprisingly strong Quebec housing market, different markets had different stories to tell in January. BuzzBuzzNews has rounded up three charts that help make sense of the ups and downs of 2018’s housing market so far.

1. Yes sales are down, but so are listings

What’s going on here: The RBC economics team uses data from the Canadian Real Estate Association to track Canada’s sales-to-new listings ratio over the past 13 years. A ratio of between 40 and 60 per cent is considered a balanced market, with readings below and above indicating a buyer and sellers market, respectively.

The takeaway: While national sales dropped in January, so did listings, causing the national sales-to-new-listings ratio to spike past 60 per cent, indicating a sellers market.

2. These provinces are staying hot

What’s going on here: The TD economics team show the forecasted GDP for Quebec and PEI over the next two years.

The takeaway: A strong economy in both provinces has been great news for their housing markets. Quebec is forecasted to surpass 45,000 sales in 2018 for the first time in its history.

3. Prices are only headed upwards in BC

What’s going on here: TD economics tracks home prices in different BC markets over the past three years.

The takeaway: While a newly introduced housing plan may throw a wrench in the gears, BC prices have been headed skywards for years.


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Sebastian’s Notes (blog attempt #1)

Many people approach me on a weekly basis and they talk to me about what they heard on the news the night before.

While the 6′ o’clock news may be good for checking the weather for the next day, I personally wouldn’t get my real estate advise from there. Their job is to spin it to you however they want to spin it to you so that you tune in the next day… Some else’s job however, is to actually crunch the numbers, and the numbers don’t lie.

Entities such as the Canadian Real Estate Association (CREA), the Toronto Real Estate Board (TREB), and the Canadian Mortgage and Housing Corporation (CMHC), crunch the numbers for us, and release detailed reports on a monthly basis.

These reports are then analyzed by industry professionals such as financial analysts, mortgage specialists, and real estate brokers (like myself), so that we are up to date with current market conditions, and in turn, able to advise our clients better.

Whether you are buying an investment property or your forever home, speak to a professional, don’t listen to the evening news.

Note for current and future investors:

It is important to remember one of the key principles of a savvy and sophisticated investor: We are resourceful and well-informed, this allows us to profit in any market scenario. Up market, down market, side ways market, it does not matter.

Whatever part of the roller-coaster (up, down, or sideways) 2018 takes us through, I am here to keep you informed, so that you can make an informed and educated decision.

For anything Real Estate, feel free to reach out to me anytime 🙂

Sebastian Diaz

(647) 500 – 4596

sebastian@blueelephantrealty.com

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