Covid has undoubtedly impacted nearly every sector in Canada. Residential real estate is no exception. In Canada, it has far outgrown the pace of growth of the economy. Residential real estate now represents the biggest percent of GDP ever. This contribution comes in the form of real estate investment; namely construction, renovation and ownership transfer fees (commonly referred to as Land Transfer Tax).
Specifically, residential investment represents 9.43% of the GDP (Q3 2020), this is the highest rate seen in the past 60 years. Initially, it was estimated that Covid would impact Real Estate, but no one could have guessed detached housing prices and demand would soar and condo listings would flood the market in the 3rd quarter of this year.
It will be interesting to see what the remainder of this year will bring and how our market will try to balance the needs of buyers and sellers. I will be sure to keep you abreast of the peaks and troughs as we experience them.
6. As always, changing topics from Real Estate for a minute, I’m sharing my top 10 interesting articles I’ve come across this month. Let me know which one you like the best and feel free to share with me your favourites reads this month.