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'Getting worse for buyers': Bidding wars are breaking out in Canada's housing market

29 Jun 2020

How is the state of the housing market across the country?

The 10-minute interview between Lauren Haw, CEO of Zoocasa (a real-estate agency), and Financial Post’s Larysa Harapyn is worth listening to

Although I recommend listening to the whole interview, I've transcribed (at my best) the 2 elements I find most interesting:

Interviewee : It's really important that you're looking hyperlocal because the west part of the country is balanced, the east part of the country is a sellers' market, but within that, there's very different stories.

Interviewer : Most recently, CMHC has said that we will see severe decline in home sales and construction...that the real-estate market won't bounce-back to pre-pandemic level until the end of at least 2022. (...) Your thoughts on that?

Interviewee : (...) It's just not what we're seeing. So, it's really hard to predict fallen prices when right now I see 3 main reasons that are keeping prices high and will drive prices further upwards:

  1. Historically low inventory (...) lack of development, of low-rise larger homes. We have far too much demand for the available supply that's there
  2. Historically low interest-rate, which makes it month-affordability possible (...)
  3. The government has stepped in to keep the market going, so between CERB and the mortgage deferral programs; those two things really has made ensured that we are not seeing a flush of inventory.

Find the original content here

Anne Denicourt-Fauvel

Residential Real Estate Broker

514 560-5657