Everything affects the housing market. if the interest rates go up .25% it affects the market. Job rate, solds, inventory, immigration, the dollar, and many more factors go into what will make or break a market.
Here are a few things that could affect the market in either direction:
1. Gas: Over time, if people have more money in their pockets, they can save more. Someone like me has been saving $30 per tank, 3x a week, that’s right roughly $400 a month, and that’s about $6000 a year, give or take. That amount of money is a small deposit on a condo development.
2. Dollar: If the dollar goes down, that means more foreign investment in Real Estate, and in manufacturing. More Manufacturing and Real Estate buys, the market goes up.
3. Immigration: The immigration rates will rise or stay the same depending on policy, but it is not going down, Canada needs immigration to bring in more money and the government knows that. This will keep the market steady.
4. Interest Rates: The interest rates will go up this year and it will affect the market. Depending on how much they go up will determine how much it will change things.
5. Inventory: In some areas there is a lot of inventory while other not so much. This affects the market in that it makes things hard to determine. Forget everything about pricing, and comparables, if the inventory level is high or low will effect your price significantly. Supply and demand.
There are so many factors that can change the market. The past has shown us that any number of things can change things and the market.