Housing affordability emerged as one of the most prominent topics during the recent election. The soaring house prices in many parts of Canada have made homeownership an unattainable dream for many Canadians.
National House Prices
Even amidst the pandemic, the housing market remained resilient and continued to thrive. Lockdowns prompted people to prioritize their homes, leading to a surge in demand for larger spaces and upgrades. Despite the recovery of the Canadian economy, housing expenditure remains a priority, with sales and prices outpacing the overall economic growth.
Calgary House Prices
In Calgary, September's home sales numbers approached record levels. Typically, sales decline in the fall, but this year, unusually low inventory levels during the summer created pent-up demand among buyers. As more homes came onto the market, those who were waiting on the sidelines swiftly entered the market, contributing to price increases.
Calgary's affordability is a significant advantage, especially when compared to the national average. However, this average is influenced by the notably higher prices in the Greater Toronto and Greater Vancouver areas. Calgary's affordability has sparked greater demand, attracting buyers from cities like Toronto, especially professionals and young couples who find that they can purchase a beautiful home in an established neighborhood for the same price as a typical family home in Toronto.
Vaticinations for the coming time vary, but the agreement is that house prices will continue to rise due to low interest rates and limited casing supplies, which will maintain strong demand.
Financial incentives to support first-time homebuyers and a home buyers bill of rights to enhance transparency in the home buying process are also part of their agenda. While there is optimism that the right conversation is taking place, some express concern about the speed of implementation.
Posted by Jerald Moras