Although it is hard to base everything on one indicator, however Canadian real estate sales are certainly a contributing factor for the strength in our economy and perhaps indicative of consumer confidence.
Take out the gasoline and automobile sales and Canada's retail sector is firing on all engines. See the graphs below.
If the past November numbers are any indication, gasoline sales declined 12.1% year over year while the health and personal care stores saw a gain of 7.4% That's not all. For real estate prices to go up the way they are, population growth is another indicator. There are certain areas of the country that have seen a downtrend in real estate prices, albeit a slight one. The increases are much higher in comparison.
Recent changes to immigration policy by Liberals will only increase the immigrant inflow. Local Canadians are dealing with increased competition from those who are arriving to settle in Canada. In the last few years, immigrant demographic has changed as well. The newcomers are not looking to rent a basement when they arrive. Instead, they are buying businesses and homes as soon as they land.
Condo market in bigger cities like Toronto are another wonderful investment opportunity that investors, both new to Canada and otherwise, have been taking advantage off. I don't blame them. My clients have realized double digit ROI on their investment. Anyone even with a little bit of spare money would invest in real estate rather than leave it in the bank. The vacancy rates are low for the rental market, creating demand, and consequently pushing up the real estate prices even further.
Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™. This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.