After a period of struggle, the housing market in Canada seems to have finally bounced back, showing signs of recovery.
The pause in interest rate hikes by the Bank of Canada has played a significant role in this positive shift.
With an increase in buyers and a surge in home prices, the market is witnessing bidding wars and a boost in sales activity.
According to Shawn Cathcart, an economist from the Canadian Real Estate Association, the demand for housing in Canada is strong and shows no signs of slowing down.
From March to April of this year alone, the number of homes sold saw a remarkable jump of over 11%.
Realtors, such as Manny Ball from Metro Vancouver, have experienced an influx of prospective buyers and a resurgence of bidding wars, with properties receiving multiple offers ranging from a couple to more than 20.
However, the rise in demand and competition has also led to an escalation in housing costs.
The average price of a Canadian home now stands at approximately $716,000, marking an increase of over $100,000 since January.
Analysts attribute this price escalation to the bustling markets in Vancouver and Toronto and the persistent lack of housing supply.
Realtors are concerned about the limited supply of homes, as it fails to meet the high demand in the market.
Some potential sellers are hesitant to list their properties due to fears of not finding a new place to live, while others are waiting for prices to rise even further.
The spring market typically sees more buyers entering the market, but the shortage of sellers is driving intense competition among prospective buyers.
While the housing market’s recovery brings positive news, the supply shortage remains a core concern that needs to be addressed to ensure a balanced and sustainable market.