With oil prices taking a hit and low interest rates available, it’s no wonder homeowners and homebuyers are apprehensive about how these changes will affect the housing market.
In Alberta, a province where oil is a major economic driver, there was signs of panic, especially in Calgary’s luxury real estate market, according to the Globe and Mail. Luxury real estate agents were receiving calls to list their homes before Christmas, which is typically a slow time of year. In January, sales were down by 35 per cent from the same time last year, while new listings were up by 40 per cent. The luxury real estate market has already been hard hit with the sale of million dollar homes dropping by 43 per cent from the year before. This is a wide difference from last year when luxury housing in the city reached a record number of sales and prices.
Meanwhile, it’s expected that British Columbia’s housing market will benefit from the economic hit Alberta is facing. Within the last few years, more BC residents moved to Alberta, but this trend started to reverse in the third quarter of last year with BC’s economy chugging along, according to the Globe. Many people moving to BC will settle in Vancouver or Fraser Valley. With more residents looking to own a home, especially with low interest rates, this could continue to push housing prices higher. Affordability will play in a large factor in a BC resident’s homebuying decision and some families will only be able to afford a home in the suburbs due to the high cost of housing within the Greater Vancouver area.
Toronto’s housing market has also benefited from a drop in oil prices and low interest rates with home sales jumping by 6.1 per cent in January compared to this time last year, according to the Globe. Most of the sales took place in the suburbs thanks to a more affordable average cost of a detached home at $650,000 compared to $950,000 for a property downtown.
Condo sales in the GTA also picked up in 2014 after a slump the year before. Investors remain attracted to condo units with the city’s high rental demand, while first-time homebuyers find houses to be above their property budgets. While construction on many condo units is underway, it’s expected that there’ll be a boom in purpose built rental property developments. Also, developers may be making more accommodations for families through family-friendly amenities and two-bedroom suites.
If you bought a newly built property, whether as an investment or for personal use, you could qualify for an HST housing rebate. With the help of Rebate4U, put some money back into your pocket by filing a claim with the CRA. We strives to provide our clients with the most professional and quality service in obtaining rebates for their new and extensively renovated homes. We are proud to offer our clients the most personal and attentive service, and we make sure that all of our clients are 100% satisfied.