Homeownership in Canada will become more feasible in prairie provinces in the upcoming two to three years. This revelation turned out recently through the latest Canadian Mortgage and Housing Cooperation report. The report came out on April 27 and comprises a perception of housing cost and supply for the period between 2023 and 2025.
Overall, the national perception appears to confirm that the housing supply will witness a shortage without being able to fulfill the demand. Although there is a decrease in prices, homeownership in Canada will be less feasible. This will be due to the rise in mortgage rates and accelerated cost levels. The Bank of Canada attempted to elevate the interest rates until 2022. While the current stands at 4.5 percent. Consequently, this has led to larger purchases becoming costlier. Moreover, consumer spending capacity has slowed down entirely.
Besides this, the report also highlighted the national perception of rental properties. Furthermore, it claims that rental affordability will decrease due to the demand surpassing the supply. For instance, in Toronto and Vancouver, these bigger cities, usually welcome a massive number of newcomers.
In the context of Canadian regions, the Atlantic region and prairies are likely to provide more stability.
Homeownership in Canada- what about the prairie provinces?
The prairie provinces, including Manitoba, Saskatchewan, and Alberta, will more likely experience a rise in positive housing market developments compared to other Canadian regions.
According to the report, a minute decrease in housing will begin in 2023. It indicates the number of houses privately owned by individuals and which are undergoing construction.
According to the report, the market has fared better than other regions during the predicted period due to increased interprovincial migration. The recent statistics provided by the Canadian Real Estate Association claim that the average cost of a home in these provinces is less than $470,000.
According to the analysis, demand for single-detached homes will decline in favor of townhomes and condominiums in 2023, which would result in a slowing in housing price rise in Calgary. The broader market is anticipated to be under pressure to cut costs as more individuals desire these less expensive homes.
Other Canadian provinces- Ontario, British Columbia, and Quebec
Three of the country’s most densely populated provinces might undergo sharp declines in house starts compared to other Canadian regions.
Canada’s most prominent property markets are prevalent in Toronto, Vancouver, and Montreal. Also, these cities are already reporting a limited supply of homes.
According to Vancouver data, fewer new homes will be built due to rising building and finance prices, declining demand for condominiums, and other factors. Additionally, it predicts that demand for rentals would increase faster than the supply of specially constructed rentals.
Similar predictions are arising for Toronto. This implies rising costs over the next two years and a construction backlog as major contributors to the reduced availability of homes.
Additionally, it might happen that the rental market would continue to be unstable. According to Zumper, a well-known flat listing website, the current average rent for a one-bedroom flat in Toronto is $2,400.
Atlantic Region
In comparison to the other regions per the report, the Atlantic region falls under the moderate category. This region comprises Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador,
Since the peak in April 2022, property prices have been progressively declining in Halifax, the largest city in the area. But because there aren’t many houses for sale, prices are rising. According to the report, out-of-province purchasers from more expensive regions still perceive the city as affordable.
According to the survey, many home starts are anticipated to be finished toward the end of 2023, releasing some of the market’s strain.
