{"id":17209,"date":"2023-06-16T20:03:00","date_gmt":"2023-06-16T20:03:00","guid":{"rendered":"https:\/\/hypotheques.ca\/blogue\/l-immobilier-canadien-va-il-devenir-favorable-aux-acheteurs-dans-les-prochains-mois\/"},"modified":"2023-07-13T15:43:12","modified_gmt":"2023-07-13T15:43:12","slug":"will-canadian-real-estate-become-buyer-friendly-again","status":"publish","type":"post","link":"https:\/\/hypotheques.ca\/en\/blog\/will-canadian-real-estate-become-buyer-friendly-again\/","title":{"rendered":"Will Canadian real estate become buyer-friendly again?"},"content":{"rendered":"\t\t
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The current state of the real estate market<\/strong><\/h2>

With the uncertainty of the labor market and immigration, our beloved forecasting crystal balls seem a little clouded.<\/p>

Tensions on the labor and immigration markets<\/strong><\/h3>

But let us tell you that a return to equilibrium in the residential market is not totally out of reach. Yes, you heard right, in Quebec, the real estate horizon could even tip slightly in favor of buyers somewhere around late 2023 and early 2024.<\/p>

The slowdown in the housing market<\/strong><\/h3>

Our loyal housing market moved further and further into its slowdown phase in the first quarter.<\/p>

Decline in new mortgages<\/strong><\/h4>

According to Equifax Canada, a 42% drop in new mortgages has been observed compared to the first quarter of 2022. This figure represents the lowest volume since 2014.<\/p>

Impact on new owners<\/strong><\/h4>

Much of this slowness is due to the declining percentage of first-time buyers on the market. In 2023, new homeowners are paying on average over $900 more in monthly mortgage payments than their 2020 counterparts, with an average loan exceeding $400,000. A figure, we grant you, to make your head spin.<\/p>

The evolution of affordability<\/strong><\/h2>

Improving affordability<\/strong><\/h3>

Yet affordability is improving just a tad. Analysts at National Bank pointed out that, after reaching its most unaffordable level in over 30 years, mortgage payments as a percentage of income were down 5.4 percentage points in the first quarter from their peak. Nevertheless, it remains at a high level of 60.9% across Canada.<\/p>

Falling residential property prices<\/strong><\/h3>

This “improvement”, if it can be called such, reflects a fall in residential property prices for the third consecutive quarter, reaching a decline of 7.3%. This is the sharpest drop in a generation.<\/p>

Comparison between Montreal, Quebec City, and Ottawa\/Gatineau<\/strong><\/h4>

By way of comparison, in Montreal, the annual salary required to acquire a property other than a condo at a representative price of $542,350 is $130,200. And for a condo at a representative price of $403,300, the annual salary required would be close to $97,220.<\/p>

In recent years, housing in Montreal has become increasingly difficult for low-income earners.<\/a><\/p>

Back to equilibrium<\/strong><\/h2>

Renewed activity in the resale market<\/strong><\/h3>

That said, a resumption of activity on the resale market was observed in the second quarter, fuelled by spring demand. The market remains in favor of sellers, but is tending towards equilibrium.<\/p>

Housing market conditions across Canada<\/strong><\/h3>

Across Canada, the housing market has been showing signs of a rebound for the past four months.<\/p>

Real estate market trends in Quebec<\/strong><\/h4>

In Quebec, the average price rose by only 2.5% over the same period, and remained stable in April.<\/p>

Forecasts for the real estate market<\/strong><\/h2>

Property demand set to weaken<\/strong><\/h3>

As a result, demand for properties should weaken in the second half of the year, while supply will continue to rise.<\/p>

Possible developments in the real estate market<\/strong><\/h3>

According to this scenario, the average price could fall by around 5% from summer to early 2024. This corrects the economists’ previous forecast of a continuous price decline of 17% until the end of 2023.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

In a Canadian real estate market on the move, 2023 could see the balance between buyers and sellers return to normal. Despite a slowdown in the market and a slight improvement in affordability, caution remains the watchword for potential buyers.<\/p>\n","protected":false},"author":4,"featured_media":16786,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[264],"tags":[],"class_list":["post-17209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/comments?post=17209"}],"version-history":[{"count":8,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17209\/revisions"}],"predecessor-version":[{"id":17692,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17209\/revisions\/17692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/media\/16786"}],"wp:attachment":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/media?parent=17209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/categories?post=17209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/tags?post=17209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}