Room for optimism on Canada house prices, says EVP

Houses for sale in Ottawa

Compared with the period of red-hot activity that gripped Canada’s housing market for nearly two years after the onset of the COVID-19 pandemic, the dip in average prices in 2022 has been stark. Teranet-National Bank’s home price index has fallen 9% across the board since May, with Toronto – typically one of Canada’s most lucrative markets – seeing a decline of nearly 13%.

Is a home purchase the right move in the current market?

While that trend may have dismayed many current homeowners who’ve seen the value of their property tumble, it’s important not to lose sight of the fact that housing remains a sound long-term investment in Canada, according to a prominent brokerage executive.

Speaking with Canadian Mortgage Professional, Rocket Mortgage Canada’s executive vice president Bekim Merdita (pictured top) urged brokers and their clients to remain cognizant of the likelihood that house prices will begin to tick upwards again in due course as the market enters its next cycle.

“I think that when markets are moving fast, either up or down, there’s a lot of uncertainty that exists with clients: is right now the right decision? Is this the right time to buy a home? I often relate buying a home to buying a stock in that it’s very difficult to try to time it in the market,” he said.

“However, if your long-term trajectory on the overall market is one of positivity – when you look out 15, 20, 30 years on your time horizon – then right now is the time to buy a home.”

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