Have you noticed that all parts of the media are always reporting on the prices of real estate across the country and whether they are rising or falling ? They also like to report on the number of sales. The main reason is not to satisfy the public's insatiable need for info about real estate- (I call this the HGTV factor). It may be a factor but it is that the real estate sector and the home construction industry is such a large economic factor. Think about it- when you buy a house- usually a realtor makes money as well as the company they work for and their staff like manager, admin, sign installer also a lawyer gets a fee (who also hires a paralegal). Then there is usually a mortgage so a banker or mortgage broker who will hire an appraiser, and maybe a surveyor. There is usually a home inspector hired by the purchaser, then an insurance policy may require an insurance inspection as well. There is also hook ups for phone, cable and electric. The government will also collect a land transfer tax. Then when you think about what other things occur- realtors use lots of paper for listing sheets, offer paperwork (lots of that) cell phone minutes, dues to associations, advertising, computers etc. Builders hire labourers, plumbers, electricians, roofers, landscapers, carpenters, rent equipment, buy carpet, appliances, etc etc. This is sometimes referred to as a travelling dollar where 1 dollar spent equals 7 to the economy.
Of course many industries do lots to the economy but what is mentioned is the tip of the iceberg and that is why government agencies like CMHC study the market and have qualified economists studying all parts of the real estate sector in all areas of Canada and the media loves to report on it. But please make sure that you look at your own local market and not just on a regional or provincial report- because what happens in one area may not impact another. Contact any of our agents to ask about how the present market conditions affect your property or the property you would like to buy.