Canada’s Real Estate Market Expects Better Housing Starts
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The real estate market of Canada failed to show any signs of recovery, though a research expected 10% of Canadians to start indulging in buying homes in a period of next two years and the percentage of Canadians who seek buying a house as a long term investment increased to 91%.
Canada's real estate market has many times accounted for the expansion in the gross domestic product of the country and has been a major contributor to its economic growth. Few of the economists have forecasted that the situation will become better once the Bank of Canada would raise the interest rates leading to more equilibrium between the demand and supply of the houses.
"The gain in February housing starts was concentrated in the multiple starts segment, particularly in Toronto," said Bob Dugan, chief economist at CMHC's Market Analysis Centre.
Urban starts rose 28.6%, 14.3%, 10.8, 8% in Ontario, Atlantic Canada, Prairie region, British Columbia respectively but dropped in Quebec by 14.1%.
According to RBC, major drivers of the real estate market will be Canadians between the age limit of 18 to 24 , out of whom , 15 % are most likely to be double the number recorded in the year 2009. Rural starts stood at 17,600 units in February.
