Skyrocketing Housing Prices Across Canada
Christopher Doyle and John Doyle
In the recent years, housing prices across Canada has skyrocketed. This spike is more vivid in rural areas, which is leaving new families with massive mortgages that take lifetimes to pay off.
In fact, from February 2020 to February 2021, Canada saw a 25 percent housing cost increase, leaping from an average cost of $542,000 to a staggering $678,000. Costs have continued rising since then. Even in my own neighborhood in the small city of Belleville, Ontario, one house that was bought for $410,000 in 2018 was recently put on the market for over $700,000!
In another instance, my friend’s house had a bidding war, and was bought for $50,000 over their asking price. These types of situations are typically seen in big cities like Toronto or Vancouver however, they are making their way into small town Canada for one profound reason, Covid-19.The Covid-19 pandemic has permanently changed the dynamic of the workforce, forcing people to work from home, and also giving them a chance to move out of the big cities and into more rural areas across the country.
Big cities have fallen out of fashion as a virus like Covid-19 has no remorse for their crowded grounds. For some if they have to quarantine - a large yard, and spacious living quarter beats the high-rise anyday. So, many Torontonians have moved to quieter places like Belleville. This rise in demand has shocked the housing market, drastically driving prices up.
So what does the future hold for the rural housing market once Covid-19 is over? The most probable answer is that it will plateau, and continue rising at a normal pace respective to previous years. Although many people will return back to the major city centers after Covid-19, it has also moved many jobs online indefinitely. And with the constant technological advancement, the world of work is moving towards virtual.
This situation will no-doubt present financial challenges to those trying to enter the housing market. However, SETO Financial has many creative solutions to support home buyers, whatever market they wish to live in. Canadians are innovators, and we will always find a way.