Pent Up Demand

It’s really important to note that Canada’s population grew by 3.3%. This is much stronger than every other OECD country.

The surge in population growth is primarily from new permanent residents, temporary foreign workers and students. However, the government also wants 400,000 new permanent residents every year for the next 3 years.

This increase in highly qualified, skilled, and employed permanent residents will surely have an impact on demand going forward, not to mention all of the buyers waiting on the sidelines for rates to come down. And, couple this with the new insured mortgage rule changes, affordability will increase for even more people.

I just love this graph below… It’s going to continue this way. Vancouver just has too much demand for our supply, and this will continue for the foreseeable (years and years) future.

Long story short, I believe that we’re going to have a hot spring but not too hot… prices are still unaffordable for many buyers and who wants to pay $1M for a 2-bedroom condo anyways?!

Notwithstanding, with all these new Canadians, and Canadians who have good, high paying jobs, properties are continuing to be purchased and demand continues to be high.