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02.01.21
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The Canadian housing market is strengthening these days and it has become a surprise for many real estate analytics. House prices in Canada began to rise the last summer and there is no sign of the decline yet.
Initially, house prices were expected to go down due to the outbreak of the coronavirus. However, these predictions haven’t come true. It’s worth noting that the demand for properties in Canada is very high. A lot of people buy and sell properties in Canada today and that’s the reason why house prices constantly go up.
None expected that the real estate market in Canada would do well during the COVID-19 pandemic. The US housing market has been doing pretty well too. The signs of the economic strength are obvious in the areas which are close to the south of the border.
According to the opinion of real estate experts, houses in Canada have become more expensive over the last few months. Nowadays, the prices on homes in Canada are higher comparing to the prices on homes in the United States.
The experts say that the average housing price in Canada is 40% higher comparing to the average housing price in the United States. On average, a house in Canada costs $617,000 and the average US home price is $445,000.
As you can see, the difference between the average Canadian and US home prices is $172,000 and this number continues to grow. Canadian homes have become more expensive comparing to the US homes during the outbreak of COVID-19.
The big question is – why this situation happens and what makes the Canadian real estate market special? Let’s try to compare the Canadian and US property markets in order to come up with the answer right now.
If you analyze the Canadian and the US real estate markets, then you’ll see that the density of population is higher in Canada. It’s also important to note that the interest rates are lower in Canada as well. So, more people are interested in buying homes in Canada. As the saying goes, “the demand creates its own supply”. As a result, the prices on homes in Canada go up.
The experts also say that Canada is the country with the rapid population growth. The reality is, a lot of people choose to move to Canada from different parts of the world. That’s why the country’s population is increasing very quickly. The same can be said about the United States. So, there is a wide home price gap between the Canadian and the US real estate markets.
Housing in Canada is obviously more expensive than in the United States and other parts of the world. However, the Canadian properties are a good investment option. A home in Canada will provide you with high return on investment over time. So, it makes a lot of sense to purchase a house in Canada if you would like to put your money in properties.
