Over the last ten years, big changes happened in Canada's real estate market, similar to how things can change a lot in your life over a decade. Zoocasa, a company that studies real estate, looked at how the Canadian real estate market has changed from 2013 to 2023.
Back in 2013, the country was still recovering from a worldwide money problem, and people who wanted to buy houses were feeling hopeful but careful. Now, in 2023, things are changing again because of the pandemic. The market is trying to adjust to life after the pandemic, which means the cost of borrowing money is going up, and different kinds of people want to buy houses.
Let's talk about prices. In 2013, house prices were going up pretty steadily. The average price for a house in the whole country went from about $365,700 at the beginning of the year to around $380,600 by the end. This was a big deal at the time. But now, the past few years have been really different. Prices went up a lot, then they went down a bit, and now they're starting to go up again. This rollercoaster ride is starting to calm down, and it looks like prices might grow slowly from now on. One reason for this is that the bank is making it a bit harder to borrow money.
Now, let's talk about who's buying houses. In 2013, many people wanted to live in big cities like Vancouver and Toronto. Even though it wasn't super easy to get a loan to buy a house, low-interest rates and affordable payments made it possible for many first-time buyers. This helped the market get better.
But in 2023, things have changed. More people are moving to Canada, and this is making it harder to find a house. Because there aren't as many houses available, people who want to buy one are having to compete with each other, and that's making prices go up. Also, lots of people who are buying houses for the first time want places they can afford, and they're interested in smaller cities and places with more space.
Finally, let's talk about mortgages. Back in 2013, it was easy to borrow money to buy a house because interest rates were really low. This made it a good time to get a loan. But now, because of things like the pandemic and higher prices, the bank is making it more expensive to borrow money. This means it's getting harder for people to afford a loan.
And about the types of houses people like. In 2013, many people were interested in apartments, especially in big cities like Vancouver and Toronto. These were more affordable than other types of houses, so many people were buying them.
Now, in 2023, apartments are still really popular, especially for people who want to buy a house for the first time. These places are a good way to start owning a home, especially in smaller cities. Even in places like Toronto and Vancouver, apartments are still in demand, and lots of people are buying them.
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