The Impact of COVID-19 on Real Estate and the AEC IndustryMarch 16, 2021
Canada offers various accommodation and housing options from short-term rentals to triplex or duplex houses. Price ranges also differ in each state. According to a statistical survey, the most expensive city to live in Canada is Vancouver, British Columbia.
However, the pandemic caused a drastic change in the country’s economy, especially in real estate. A complete turnover in market preference happened wherein the rural and urban areas became desirable areas for homeowners while downtown condo markets have low demands.
According to the statistical data published by the Canadian Real Estate Association, between December 2020 and December 2019, it held the highest year-over-year increase in 11 years. It was 47 percent higher compared to the previous year in terms of the existing properties.
From July 2019 to July 2020, statistical data presented by Statistics Canada – there is an increase of 50,375 people fled from the city the suburbs with an affordable price range. A similar trend also happened in Montreal, Maritimes, and Halifax.
However, the deterioration of housing affordability raises a concern that will likely face severe competition in 2021. Robert Hogue, an RBC economist, expects favorable negotiations for sellers. On the contrary, there will be an increase in demand for consumers in house preferences, low-interest rates, and others. The homebuyers will probably have limited options for housing.