Exceptionally low interest rates, government incentives (rebates, tax breaks and RRSP contributions), the looming HST and a renewed consumer confidence puts Canada as the world leader when it comes to the recovery of the global real estate market.
In a recent report on Global Real Estate Trends written by Adrienne Warren of Scotiabank, Canada is leading the way in the global real estate recovery with positive growth in housing starts, housing sales and average prices. Prices in Canada remain strong due to the increased demand for housing, coupled with low levels of housing inventory. First time buyers are out in full force keeping the demand high, but those in a position to move up the property ladder are deciding to hold contributing to an imbalance in supply and demand.
Many sellers may be waiting until the spring to list their homes in hopes of an increase in sale prices when more buyers come to the market. With the HST being introduced in July and rising interest rates, it is unclear if the demand will remain at these levels.