In recent times, the real estate market has been a great topic of conversation for investors, homebuyers, and sellers. We have seen an upward trajectory in home sales, an overall upbeat outlook in the industry, and some concerns surrounding mortgage arrears. In this blog, we will provide you with a comprehensive real estate market update.

Upbeat Real Estate Outlook: Canadians are feeling optimistic about real estate as an investment! The Real Estate Outlook Index has surged nearly 30 points since February, reflecting a positive shift in sentiment.

Long-Term Supply Crunch: A Growing Concern for Housing Markets Despite high interest rates curbing demand, the number of single-family homes for sale remains near decade-low levels in most metros. With housing starts declining, there’s a potential for a prolonged supply crunch.

Home Sales Continue to Rise: The housing market keeps soaring. In May, home sales surged by 5.1% compared to April, and over the past 3 months, they have skyrocketed by 22%, even after considering normal seasonality. It’s a dynamic market with incredible momentum.

Mortgage Arrears Still Near Records Lows:  Impressive resilience in challenging times. Despite rising interest rates and the high cost of living, the share of mortgages in arrears remains near all-time lows, standing at just 0.15%. Homeowners are managing their mortgages effectively.

It’s essential for buyers, sellers, and industry professionals to be informed and adjust to changing circumstances as the market changes. Whether you’re a homebuyer, a seller, or an investor, the dynamic nature of the real estate market demands careful consideration and strategic planning to maximize opportunities and minimize risks.

 

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