Aug 25, 2020 by Sean MacKay
There has been a staggering decline in new arrivals to Canada because of the pandemic going on. According to Senior Economist Andrew Agopsowicz’s research note from RBC, the visa applications had also fallen 80 percent during this period showing that “the slowdown could be lengthy.”
The longer term impact of this precipitous fall on the country’s housing market, this is what Capital Economics’ Stephen Brown is fretting about.
“The sudden plunge in immigration is a particular concern given the number of homes under construction is near a record high,” Brown wrote.
“Even if immigration dropped by just half, the ratio of units under construction to population growth would be far higher than at any point in the past three decades,” Brown continued. He also added that the home sales and new home building permits are still strong. With all these, 2021 still depends on how quickly immigration can bounce back.
What does this mean?
This article is fascinating, even enlightening, but you may have no idea what to do with the information it provides.
It’s dangerous to load up on knowledge and move without the practical wisdom to act.
Every week, our coaches post real estate insights and stories from the streets. They unpack real deals, breaking down the numbers, and highlight trends that their clients are making money off of.
Their wisdom is freely available to you right here.
Sign up for the iWIN Real Estate Newsletter now so you never miss the practical wisdom we are already sending to thousands of investors in Ontario.