2016 purchases a sensible investment—analyst

Despite economic setbacks due to weak oil and a flagging currency, Canadian real estate has historically been a proven performer in the long term, and a real estate analyst noted that this year is shaping up to be no different from this track record.

In a February 29 piece for HuffPost Business Canada, long-time YPNextHome writer and analyst Wayne Karl pointed at the fundamentals—aside from official figures pointing at a 1.5% growth rate for the economy in 2016 and 2.5% for 2017—that would make Canada’s real estate markets a good choice for investors.

The main driver of performance remained, of course, the consistently low interest rates that have been attracting both domestic and foreign investors in droves. These rates are expected to last throughout the year.

Another factor propping up Canadian real estate is the high volume in leading markets such as Toronto and Vancouver, where record levels of growth in sales and prices have been observed in the past few years.

“Longer-term performance for these markets is off the charts. Greater Vancouver average home prices rose 20.56% in the last year, 31.58% over the last three years. For the GTA, the figures are 10.69% and 27.44%, respectively,” Karl noted, adding that the warmer weather of the coming springtime would spur greater market activity.

(Source: Real Estate Professional)