Immigrant’s Power – Helping the Canada Housing Market
680000 homes might purchase by immigrants in the next 5 years in Canada
According to a new survey; more than a 1/5 of the homes owned by newcomers, helping boost real estate in Ontario, Quebec, and B.C.,
Royal LePage shows: immigrants buy 21 percent of houses and may purchase 680,000 homes during the next five years if migration levels are maintained, the poll commissioned.
“In addition to supporting Canada’s economic growth, newcomers to Canada are vital to the health of our national real estate market,” Phil Soper, Royal LePage president, and CEO said in a statement. “Newcomers are doing more than investing in Canadian real estate, they are investing in their family’s future.”
The survey lands as the country’s housing markets rebound from the imposition of tighter mortgage rules over the past two years that were brought in to limit speculation and soaring prices in markets such as Vancouver and Toronto.
Royal Bank of Canada senior economist Robert Hogue notes that conditions are ripe for another rally in housing prices after a pause earlier in the year.
“Demand-supply conditions have tightened up, and are gradually heating up prices. Low-interest rates, strong labor markets, and rapid population growth will continue to fuel demand in the period ahead,” said Hogue in a report. “Promises made during the federal election campaign could heat things up further.”
All the major political parties remain open to some levels of immigration, and the perception appears to hold among newcomers, according to the LePage survey.
B.C. came third with about 13 percent of newcomers to Canada, according to Statistics Canada and holds the survey’s highest amount — 89 percent — of those who arrive with savings to buy a house, perhaps reflecting the strong influx of wealthy Asians in the market.
Realtor’s opinion: For the long term, the real estate market will be going up again, however, 2020 might be a challenge; it really depends on how the economy goes.