Predicting the local real estate market is always a difficult task as there are numerous evolving factors that can shape the future and have an unforeseen impact. But with my experience in the industry, I can perhaps offer more insight than others about the changes taking place in Collingwood. In this post, I’ll take a look at the predictions for the Collingwood real estate market in 2019.
The first element to consider when reviewing any market are the challenges that exist throughout the region. There are a number of challenges that the Collingwood real estate marketplace faces as well as the general Canadian marketplace. These challenges include:
- Interest rates
While the Bank of Canada continues to hold steady on interest rates in 2019, there is a possibility that rates will rise in the coming months. The link to the U.S. market cannot be over-stated and you can expect the interest rate to rise in Canada when the U.S. rate moves higher over the next two financial quarters.
- Personal debt levels
Personal debts levels in Canada – and particularly in Ontario – are at record high levels. The finances of Canadians across the country are tied closely to the interest rates and if they rise, as expected, this will put additional pressure on personal debt levels.
- Global economics
The global economy, in general, is experiencing a downturn as instability related to Brexit and the China-U.S. relationship has had a severe effect. There is continued talk of a global slowdown in 2019, which may have a knock-on effect on Canada, due to oil prices.
Despite the numerous potentially negative influences impacting the Collingwood real estate marketplace, there are numerous positive factors to consider. These factors include:
Canada continues to welcome immigrants from across the globe to the country. The renewed vision of the Trudeau government sees millions more choosing Canada as their home in the coming years.
Unlike many of the other countries in the G8, Canada has a younger population and the millennials are now at a stage where they can begin to buy homes. This will increase the market for home sales considerably in coming years.
- Rental rates climbing
Rental rates are climbing significantly, and investors will see increasing returns for their properties from 2019 onward.
Call me and my team directly to learn more about the Collingwood real estate marketplace! 2019 promises to be a great year.