Canada and the Housing Explosion

Recommend this page to Google

Canadian real estate market is growing at an alarming rate. This phenomenal growth is more prevalent in the western provinces, and this has been primarily aided by increased number of jobs; low unemployment rate, low interest rates and as the result low mortgage rates on the real estate property. These low interest mortgage loans were primarily accorded because the condos were available for selling, before they were physically present on the land. A new set of protocols is therefore created. Under this, the real estate property agents and developers begin to sell a part of property, before the construction activity, and sells the remaining realty after the construction is over. In this manner, the realty developers can adjust the prices of condos and other housing properties according to the prevailing real estate property market.

Moreover, beyond these low interest mortgage rates, market is also susceptible to the likings and demands of the consumers. Take for example, in Alberta, due to greater availability of oil resources have resulted in an extensive migration of people to the region and as the result there is housing shortage and this has driven the realty prices high. Now for those Albertans, who have passed their prime can earn huge profits by selling their property at high prices and moving to British Columbia for amusements and to enjoy their life to the hilt, by keeping themselves busy doing golfing, fishing, and sailing.

Moreover, the regions located along the coast show a tremendous immigration belonging to retiring age groups. As per the population statistics of Canada, such a large-scale immigration of working people has not been seen anytime during the century. The important point to think is that many of these retirees have good amount of time, at least 15 years or more, to enjoy their life, and do what they want to do.

The infrastructure planners and developers conceptualize the new and innovative construction ideas in order to realize the dreams of the new immigrants. With new building and construction concepts developing, there is much demand for housing in Canada. An average Canadian has his or her morale boosted. The one time sluggish economy of Ottawa has transformed into a strong business activity center and plenty of job opportunities, and this has created demand of residential real estate, all of a sudden.

Saskatchewan is another such example, which has seen the growth in its economy has taken place because of surplus of natural resources rich in uranium and potash. It also has one of the Canada’s big grain markets and as the result; there has been phenomenal boost in the real estate sector in this region. Such a real estate boom has not seen elsewhere in Canada. Saskatchewan is the only province, which has seen the highest percentage of annual unit sales and the proposed new schemes for housing.

Another high commercial activity center of Canada - Toronto, and the greater Toronto area (GTA), already had appreciable real estate market, and it is developing even more, due to large-scale immigration, good employment opportunities. The real estate costs in GTA is continuously increasing, and above all, you will see that this area has undeterred scope for the housing. In addition, the prices of houses in Toronto are much higher as compared to other provinces such as Calgary and Edmonton. On the contrary, if one compares the rate of growth of housing prices, then Calgary and Edmonton, completely outsmarts Toronto.

About the Author:

Ravinder Tulsiani is a published author and writes numerous articles and books on finance, self-help and relationships.
Source link:

No votes yet