To say that Canada’s housing market has experienced its share of ups and downs would be no understatement. But after years of fluctuations, a new report indicates that the market is beginning to stabilize.
“The Canadian housing market is transitioning to a balanced level of supply and demand,” says Brian Hurley, Chairman and CEO of Genworth Canada. “While lower demand has cooled the housing market, this latest research shows moderate growth over the next few years, which points towards a more stable market for both buyers and sellers.”
Genworth Canada’s Spring 2013 Metropolitan Housing Outlook shows that markets will remain relatively stable due to the strengthening of the national economy and the tightening of mortgage rules.
According to one expert, the markets will be able to maintain this sense of stability if interest rates don’t increase.
“I think we’ll continue to see a steady pace of purchases from homebuyers as well as investors,” says Marcel Greaux of Mortgage Alliance. “As long as interest rates don’t fly away from us, I think we’ll continue to see a steady pace of purchases.”
The report also indicates that average prices across the country have already risen by 2.1 per cent this year, a trend that is expected to continue over the next five years.
Also expected to increase is Canada’s GDP, which is projected to grow to 2.5 per cent in 2014.
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