No doubt that a home’s primary value is in the roof it puts over a person’s head, but even someone who doesn’t work in real estate or is a homeowner will know that it’s a whole lot more nowadays and especially as so much investment has been put in real estate. It’s safe to assume that supply is always going to outstrip demand in Canada, so here we are. Homes in areas that are considered to be desirable are always going to have more value, but of course nowadays we’re seeing homes in nearly every part of the country going up in value too.
This poses a problem for many would-be first time homebuyers who find that the prices of home are very much beyond what they can afford. On the other hand it’s a benefit for homeowners who like the sound of getting much more for their home than what it would be worth otherwise. It’s also an advantage for realtors who stand to gain more from being the agent who sells the home. This can be a tough business to break into for new realtors, but here at Real Estate Leads our online real estate lead generation system is an excellent way to get ahead early.
Different areas of the country will have different valuation levels for homes, and we thought we’d detail what we know about that here with this week’s entry.
Overall Overvalued
As a whole Canadian cities are overvalued somewhere in the vicinity of 22%. This is especially true for cities. This value is expected to rise another 2.6% next year, and with less growth the year following. The average growth over the next two years is forecast to be an annual average of 1.38%.
Ontario – Most Overvalued
Real estate in Ontario is the most overpriced in the country, and that likely won’t surprise anyone living there. The estimate is a 22.6% overvaluation for 2021. Prices are forecast to rise 1.3% next year and showing an average annual growth of 0.3% over the next two years.
BC – Undervalued
BC real estate is undervalued if you take it as a whole and not taking Vancouver – the most overinflated housing market in all of North America – BC real estate is undervalued. The province’s markets were 3.0% undervalued in Q2 2021 and only around 2.0% growth is expected for next year and an average of 1.8% annual growth over the next two years.
Nova Scotia & Quebec – Significantly Overvalued
Home values for Nova Scotia (15.3%) and Quebec (14.3%) are majorly overvalued too. Nova Scotia is forecast to rise 0.9% next year and drop an annual average of 3.0% over the next two years. Quebec will likely see prices rise 2.4% next year, with average annual growth reaching 3.0% over the next 2 years.
Alberta Real Estate – Most Undervalued
Alberta real estate currently comes in as the most undervalued market in Canada. The province’s residential market is estimated to be 19.8% undervalued in Q2 2021. Countering that though is the fact that Alberta home prices are forecast to lead the country in price growth over the next couple of years with an estimated 7.8% rise next year and 9.3% over the 2 years after that.
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