Canadian Fundamentals Keeping the Country’s Property Market Growing
Low interest rates aside, Canada has many underestimated fundamentals working in favour of its property markets, which will help fuel the Canadian property market and real estate investment portfolios through 2015.
While some have proclaimed the Canadian property market has been growing too fast and imply it relies on oil prices too much, the statistics and fundamentals indicate otherwise. The latest data and headlines shows from Edmonton to Toronto, the Canadian property market continues to move ahead with confidence in 2015.
Data from the Canadian Real Estate Association (CREA) shows that property prices have actually been growing at a steady and sustainable rate, even as investors continue to net globe topping yields on income producing investments. According to CREA, national home prices only nudged up 3.8 per cent between Dec. 2013 and Dec. 2014.
There is far more to the Canadian economy than oil prices. While the focus recently has been on the luxury, urban core real estate in parts of Canada, 90 per cent of the nation does have affordable real estate. This is creating a new foundation of strength, while allowing for more growth.