Posted September 14, 2018 09:23:48 The US housing market is not looking like it’s heading for a full-blown crash anytime soon, according to a survey by real estate consultancy Knight Frank.
The survey of US and Canadian home buyers finds a total of 5,000 buyers were surveyed in September, and just 1,400 were renters.
Knight Frank’s survey found that renters were much more likely to be renters than homeowners, with an average rental rate of 6.4 per cent.
While this is lower than the 8.7 per cent homeowners had reported, it still represents a significant number of renters, especially in areas of the country where the number of rental homes is growing faster than homes for sale.
In Canada, a total 4,700 rental households were surveyed, with 7,300 of those surveyed renting.
More people are renting in areas where there are more vacancies, which means they’re paying more for their homes, Knight Frank said.
That’s a trend that’s been seen in the US, where the average price of a home for sale in the first quarter of 2018 was up 3.7 percent from the same time last year, according a report by Zillow.
A total of 1,000 people were surveyed for the survey, with the average rent for a single person in the United States at $1,838,000, according the report.
For comparison, the median rental home price in Canada was $1.6 million last year.
However, there are a few caveats to consider.
As the Knight Frank survey notes, this data was collected before the start of the housing bubble in 2008, which led to a huge increase in rental properties.
According to the Zillows report, that bubble may have also been triggered by an increase in demand for affordable homes, particularly in the suburbs.
Another possibility is that there’s a strong supply of homes in some areas, with more properties available for sale than available for purchase.
There are also the concerns of an influx of buyers into the market.
If that were to happen, demand for rentals could slow, and renters would struggle to find homes.
But there is some evidence that it’s happening in Canada.
Real Estate Investment Trust Canada reported in November that home sales in the province jumped 15 per cent in January from the previous month.
It said the average vacancy rate for a home in January was 6.7, up from 5.6 in January 2017.
“The average price for a detached home in Canada is now around $1 million, a level that has been in the neighborhood of $2 million for some time,” said the report, adding that the number is still below the levels seen a decade ago.
Still, even if demand for homes is slowing, rental housing remains the best option for those who want to buy a home, according KKW Research, which surveyed more than 12,000 Canadians and US buyers.
This is despite the fact that Canada is not a true market, said KKw Research chief economist Paul Pritchard.
You have to go to the US to buy real estate, so there’s no way of seeing how many are interested in purchasing.
Canada has the largest number of new home sales since the recession and has a relatively low number of listings, meaning people who want homes are often willing to pay a premium for them, he said.
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