A Look at Canadian Property Drivers Ahead
Bad ‘news’ and scary hype might drive more views and shares for media websites, but the truth is that there are many positive factors bolstering the Canadian real estate market.
The truth is that not only are major Canadian property markets still firing on all cylinders, hard data and core fundamental information are showing the nation’s position and future as one of the strongest, safest and best performing .
Beyond improving bank performance and a veracious appetite for buying homes and commercial real estate, here are some of the factors propelling the nation forward.
Low Mortgage Interest Rates
Lower interest rates in 2015 are propelling more home and investment property acquisitions. The fresh rate cut suggests this trend will continue for a while before reversed.
While a rapid plummet in oil prices provided the media a lot of fuel in the last few months, we’ve already seen them beginning to bounce back from their low in January.
Oil is far from becoming redundant. Even though Obama has vetoed the Keystone XL pipeline bill, Michael Bloomberg recently told the Financial Post that there is a solution here, in Canada and that victory is still possible. Even if the pipeline doesn’t happen, Canadian innovation is sure to come through to create something even better.
Expert analysts continually agree that the most important factor in real estate performance is affordability. While some might not think Canadian real estate is ‘cheap’, put in proper perspective, it is still very affordable for the most part given strong Canadian employment, wages and low rates.
Overall national and personal financial health remains strong in Canada. We are proving to be a nation that loves shopping. Our retail sales per square foot are among the highest in the world. This not only applies to investing in retail properties, but crosses over to support the housing markets in close proximity to fashionable shopping.
Foreign Investment Capital
Recent studies and surveys forecast incoming investment capital will be stronger than ever in 2015. This won’t just maintain strength, but spur growth in construction and prices too.
Together these factors can ensure Canadian real estate performance will be more than just okay throughout the year.