While most of the wild talk about the “housing crisis” has made no sense whatever, this week we received a refreshing common sense response from the CEO of CMHC. He said that the “best way to combat soaring home prices is building new housing” – genius!
But, we seem to be tied up in red tape causing projects to be stalled due to duplicate red tape, staff working from home and a bureaucratic log jam. This is the real cause of delay rather than so called “greedy companies” and non existent foreign buyers. Watch out for the fast approaching moment when “delayed due to Covid” is no longer an acceptable excuse! We, the voters, have to hold our elected officials accountable for what happens at City Halls and get the balls rolling at a reasonable pace.
Meanwhile at the commercial end of the real estate market, we have seen office and retail sales increase by more than 62% in the first quarter of this year. Also sales in land, industrial and multifamily categories are all up. With a shortage of rentals as Canada begins to emerge from the Covid-19 recession, there is fear for those looking for a rental place called home – as per ‘Rental Housing Business’.
Many of the factors affecting the immediate commercial market are similar to those in the residential sector – trying to second guess public choices and confidence as we move into the new normal.
Will there be a drive to be your own boss, to return to the City , to work from home, to move to a more affordable province etc.etc? As we know from the past 18 months, the most unlikely scenarios can, almost suddenly, populate our real estate landscape.
In the meantime, the Bank of Canada raised its inflation forecast and pulled back on its bond buying program in the expectation of our economy experiencing rapid growth for the second half of this year.
So…. at this point, let us only count on having a good summer, reuniting our families, loving our children & grandchildren, cherishing our friends and staying cool. Here’s to the holidays we have been waiting for!
IF you have also been waiting for the “right time” to buy and/or sell, we’ll be happy to consult with you – listen and advise according to the very best outcome which meets your goals. It is never too early to consult and be prepared for that “right time”.
We remain your Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis.