They say real estate is always a good investment, but does that still hold up even during the pandemic? The Canadian housing market was very strong for residential real estate investors, and most of those surveyed agreed that the trend would continue, at least until the middle of 2021. The Financial Post wrote an article quoting economist Robert Hogue, economist for the Royal Bank of Canada (RBC), who stated, “2020 was the strongest year for residential real estate sales”.
Despite the COVID-19 pandemic, they estimate that Canadian home sales increased by around 13% last year. This beats the previous record set in 2016 or 539,100 homes versus the 552300 units sold in 2020. The economics division of RBC projects that 2021 will see about 588,300 units sold due to low-interest rates.
Like all good things, the strong market is expected to cool as we head into the second half of the year because there may be fewer homes on the market and rising long-term interest rates.
What does that mean for real estate investors? Well, it is all about timing; a slump in the real estate market can mean a surge of buying from investors. Let us take a look at the current market trends and opportunities.
A Look at the Statistics:
All investors have a goal of buying low and selling high. This is true for real estate as well as other investments. Those looking for real estate investments may be able to scoop them up now at a great value and sell them for a profit when the market is more advantageous.
The Canadian Real Estate Market Association released a report in January 2021 that states that national home sales in Canada set a new, all-time sales record in December 2020.
Here is the rundown:
· Canadian homes sales rose over seven percent month-over-month in December 2020.
· Activity was up 47.2% year-after-year.
· New property listings increased 3.4% from November to December.
· The MLS Home Price Index went up 1.5% month-over-month and 13% year-over-year.
Are You Looking for Investment Property?
Many real estate investors are using the inexpensive residential market to gobble up some deals and hold on to those properties until they can find the right buyer and make a profit.
If you are thinking about investing in Canadian properties, many companies look for homes for buyers. Calgary real estate agents can help investors find properties in the Calgary area. There are other companies out there that specialize in other areas throughout Canada.
The right provider will look for local buyers and connect them with properties to help them build wealth for a secure future