The Canadian residential real estate market is an important part of the overall country economy. While economic conditions may dictate real estate needs in Canada, the availability of a large number of buyers and sellers have created a steady supply of housing. A strong economy, increasing household income and a growing population have all contributed to the expansion of the Canadian residential real estate market.
Market Size and Development Tendencies
The Canadian real estate market is a high-growth industry experiencing an average annual increase in housing prices of 5.8% over the past decade. What is more, the low-cost housing market experienced an average increase of 7.4% in the past 5 years, which is a good tendency for sure.
The increasing need for residential space is one of the primary factors driving the demand for residential real estate management and brokerage services. The number of transactions being done via online portals, mobile applications, and social media has also had a significant impact on the demand for residential real estate services. Increasing homebuyer confidence, increased availability of credit, and government initiatives to encourage the construction of more homes have further escalated the demand for residential real estate services. Some other industry key drivers are high-tech solutions, such as virtual staging Spotless, which bring the market to a whole new level.
Real Estate Market Trends
Real estate has been a growth industry for over a century. But if we look ahead, it will face new trends in the coming years. In the short term, there will be some exciting technological trends like artificial intelligence, virtual reality, and augmented reality. But over the long term, it will be an era of “unstoppable momentum” where real estate development will flourish even more than it does now with a new style of furniture and designs. There are some major trends that are likely to play out over the next decade and beyond.
1. Artificial Intelligence and Virtual Reality
Artificial intelligence and virtual reality are two of the hottest topics in the tech industry. While virtual reality is already well established and growing in popularity, artificial intelligence is a little newer and has more potential. We are already seeing a lot of integration of artificial intelligence and virtual reality in the real estate industry. It is an exciting time for both and is going to open up a lot of doors in the coming years.
In 2016, we saw the first of an expected wave of robots that moved from the manufacturing industry into the service industry. And with time, more and more sectors are going to be touched by the use of these technologies. In real estate, for example, it will be possible to sell a home using artificial intelligence. Just imagine a home that is customized to your exact needs with all the amenities and features you want. You can see yourself living in the home within hours after purchasing it.
2. The Rise of the Real Estate Asset as a Hedge Against Financial Downturns
Another area of real estate that is likely to see increased growth is real estate as a hedge against financial crises. What’s going to happen is that real estate will grow much more significantly. Even if it is the housing market that is growing, it will help drive home values up and be one of the only assets that you will be able to take a part of in order to get through a crisis and to survive. Thus, the real estate asset will become an extremely important way to hedge against economic crashes.
It’s also interesting to see how real estate assets will be used in a crisis. For example, in the crisis of 2008, we saw a lot of properties that were foreclosed on and turned into rentals. That created an entirely new industry of investors and private equity firms. It’s very similar to what we’re seeing today in real estate development, where investors are using real estate as a way to hedge against economic downturns.
3. The Rise of Multi-Family Real Estate
Multi-family real estate will become an even more important asset in real estate in the coming years. At the moment, it is considered an industry niche that only wealthy investors are able to participate in. However, that is going to change, and multi-family real estate will become more mainstream.
As the real estate market starts growing and people start purchasing homes, they will want a place where they can live with others. As the population continues to grow, we will see that shift. That’s going to cause an entire industry to grow, and the industry will continue to grow. In the long term, multi-family real estate will become even more attractive. You’re going to start seeing more and more housing developments built on apartment buildings with recliners, appliances, and cabinets with an emphasis on living with friends and families.
The Future of the Real Estate Industry
Overall, the real estate industry is very much in a position to see increased growth in the years to come. The biggest factor that will help drive the real estate industry is demographics. We will see more and more young people enter the housing market and a dramatic rise in demand for real estate products.
