Canada’s Real Estate Market in 2016

It might be blooming in Canada’s oil and gas sector but the real estate market in Canada seems unaffected. According to Toronto Real Estate Board (TREB) prediction, the prices of house in Canada are expected to rise by 10% and this is one of the biggest factors that will be affecting the Canada’s real estate market in 2016 as well.

TREB claims that the condition of real estate market in 2016 should be considered by many of the investors who are thinking about making an investment into Canada’s real estate market. Currently, the oil prices are at its low and many of the workers have been laid off as the Canadian oil and gas production companies are witnessing a downhill slide. But still the energy and real estate sector in Canada is in good shape. Though the real estate market in British Columbia is soaring following the rising prices in Vancouver. Even people living in Vancouver are moving out of the city following the rising real estate cost. Accordingly, it has become more affordable for new home buyers as the mortgage rates are increasing. As long as the real estate market is high, demand for rental homes across the country will also remain high. Those who own a house in Canada seems to welcome more of foreign investment as their property is valued high.

As a sigh of relief for the people, the federal government in Canada has increased the minimum insurable down payment required to mortgage a home over $500,000. Currently, we can see that even the wealthy people are also making investment in the real estate sector. A recent provincial budget included a property transfer tax exemption for new home buyers for the homes that are priced upto $750,000. Tax exemption will come as an advantage to certain provinces where the demand for housing is much low and also for the home builders.

Basically, the prediction for the Canadian real estate market in 2016 comes as boost for investors who are looking to make a real estate investment.