Page 19 - 2020 Buyer Package - Pallavi

FACTORS AFFECTING THE MARKET VALUE

SUPPLY vs DEMAND
Put simply, if demand for houses increases faster than supply, then house prices go up.
For house prices to fall the demand needs to fall.

INTEREST RATES
When national interest rates rise, mortgage lenders generally increase their
rates as well. Interest rates play a huge role in determining affordability
and higher rates can make home buying less attactive.

ECONOMIC GROWTH
As the economy grows and wages increase, more people can afford to buy

property. This in turn increases overall demand which increases prices.

DEMOGRAPHICS
As levels of immigration increase so does the population and more
people means more demand for homes. Changes in demographics
also play a role. For example, rising divorce rates or a growing
retired population.

LOCATION, LOCATION, LOCATION
Canada is a vast and varied country but if you look at any map
you’ll see a high concentration of housing and demand around city
centres. The majority of people want to live close to where they work,

shop and go out to enjoy themselves. This naturally causes higher
demand and prices in those areas.

HOME IMPROVEMENTS
Updated kitchens, bathrooms, flooring, paint and landscaping can all add to the value of
a home but it is easy to fall in love with a renovated property and fall into the trap of an
emotional buy. It is also easy to overlook a property with great potential because it is not
staged. A good realtor will help you look beyond the obvious.

EXTRAS
Items such as extra bathrooms, parking provisions, potential
future development, facing and many other can play a big part in
why some properties on the same street can sell for more
or less than other seemingly same
properties. Your realtor will help you
figure out the differences and
understand the local market.