The Re/Max 2013 Outlook was pieced together with survey results of trends in 26 markets, which indicate that while the market can expect a mild correction in 2013, a crash is unlikely.
"Despite all the negativity surrounding residential real estate, the sky is not falling," said Gurinder Sandhu, regional director of RE/MAX Ontario-Atlantic Canada. "Home sales have moderated, but remain within healthy levels.”
National sales are expected to fall another 1 per cent by the end of 2012, and then moderate throughout 2013. Flaherty’s mortgage rules may have slowed the market somewhat, but 454,000 units are still expected to change hands in 2013.
The market trends examined in the report such as interest rates being at an all-time low and immigration and population growth expected to continue bode well for investors. The report also revealed a strong pull-back in activity in Vancouver, but strengths in Western provinces such as Saskatchewan and Alberta.
Although the investment landscape may look decidedly different heading into 2013, it is one that still hosts opportunities for investors. Property values aren’t expected to decrease, and there is still demand for rental housing as things like population and immigration rates are expected to continue to grow.
In fact, as many would-be first-time homebuyers find owning property out of reach, their reliance on renting is expected to contribute to a healthy rental market.
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