Canada is high on real estate. Its home price index rose 9.3% y/y in Q4 2017 as the number of sales rose 4% y/y. Even higher is Canada’s optimism that its housing market will continue to appreciate into and throughout 2018. Some 43% predict that appreciation.
Bloomberg’s Nanos Confidence Index for Canada is the highest its been since 2009. A booming jobs market, a strong housing market and the end of year bump in commodities prices buoy that consumer confidence. Across all regions of Canada, people see gains in job security and housing outlook.
More reasons for optimism…
– Canada’s jobless rate in November fell to 5.9%, the first time that rate has fallen below 6% since 2008 and one of the lowest jobless rate readings in the past 4 decades
– Average hourly earnings, stagnant in 2017, are showing “up” signs.
– The housing market is resilient in all regions.
– Canadian dollar is stronger and rising stock market prices are boosting purchasing power.
– Oil prices are beginning to rise.
– Prairie provinces indicate highest levels of confidence in the housing market since 2014.
The two big questions relating to Canada’s housing market are…will the Canadian economy decelerate from 2017’s elevated levels due to the Bank of Canada’s strategy to raise interest rates? And will household spending continue to carry Canada’s economy as it has since the collapse of oil prices some years ago?
Another big question relating to Canada’s housing market is…why are there still no robotics, drones, 3D printing and artificial intelligence apps/amenities available to real estate professionals and consumers in Canada?
Rather than buyers in the past wanting exclusivity, real estate consumers today everywhere want inclusivity. With seemingly endless tools and apps available in the US for real estate players, Canada currently has these tech options to make the buying process more accessible and accountable:
– Zoocase – online neighborhood search for online brokerage platforms
– Casaloca – users can search listings, book viewings, pay rent and enter buy/sell markets
– ReInvent Realty – merges big data with local listings
– Opus 44 – data intelligence bots for agents
-Homies – automates property management
– Red Pin – listing database
– FeeDuck – asks sellers for details and then agents bid for listing over 24 hours
True Bidz – same as above for Toronto
No doubt there will be more tech available for Canadian real estate professionals and consumers sooner rather than later (and likely there are already more choices right now than those listed above.) Either way, more real estate tech for the Canadian housing market will be much appreciated by all.