What Canada's Housing Market Will Look Like In The Next 12 Months, According To An Expert

Canada's housing market is constantly surprising both buyers and sellers.

If you've been interested in buying a home in Canada, you've seen super high prices, and lately, you might have noticed a "correction" in the cost of homes.

So, is it possible at all to plan for the coming year when the price of a house seems things can change so quickly?

Narcity sat down with real estate agent Trish MacKenzie to get her forecast on what the upcoming 12 months in the world of Canadian real estate are going to look like.

Simply put, MacKenzie said that understanding the housing market is "everyone's favourite puzzle to try to solve."

But, there are a few things we can start thinking about preparing for in the next 12 months, according to MacKenzie.

"As always, supply is going to be a major factor in the home prices we see," said MacKenzie.

"With sellers nervous about the return they will see in their asset, many will hold off listing their homes if they can," she continued.

Homeowners don't want to sell in a low market, even though tons want to buy under those conditions.

That would be a reverse of what we saw in February of this year when people who sold in a high market also had to buy in a high market.

This will mean that while we have generally low housing prices across Canada, we could see a major hit to the supply.

"But the quantity of supply isn’t the only factor — so is the quality," MacKenzie noted.

"With many of my first-time buyers, I am feeling their frustration that there are opportunities available to them, but the quality of the inventory is still not up to par."

Potential new homeowners are facing the fact that a lot of houses going onto the market will have had the same owners for 30 or 40 years, which means their budget could disappear when renovations are included.

"They find an option that on first impression seems great," explained MacKenzie. "But the work required makes it even more difficult to find a lender who will finance and insure the property."

On the flip side, if you're a seller, you might simply just be thinking "not my problem." That is until no one buys your property.

MacKenzie said that how we think about homeownership could likely change in the next 12 months.

"We may see a shift in what it means to own property as an individual or family as one generation (baby boomers) sell off their assets, and a new generation (millennials and younger) take action towards homeownership."

Of course, she's quick to mention that there is no "perfect time to make a move in our housing market."

For sellers, she suggested that you "work with an agent who can help you put together a strategy for bringing your home to market."

This includes "giving you a clear vision in the values in your area and barriers buyers are facing" to make your property more desirable for buyers and lenders.

As for buyers, she recommended getting "a strong support team" and staying on top of the latest benefits and changes to the economy.

"Look for solutions on how to make your money work best for you," she advised.

"The best time to buy or sell, to make any kind of moves in our market, is when it makes sense for you and your lifestyle."