How to Research the Real Estate Market in Canada Before Buying

Whether you’re buying your first home or considering your next investment property, understanding the local real estate market is an important part of making an informed purchase.

Knowing how to research the housing market in Canada can help you compare properties, understand local trends, identify potential risks, and determine whether a property fits your long-term goals.

Before making a major real estate purchase, consider these five areas of research.

1. Start With Historical Real Estate Data

Before you can understand where a housing market may be heading, it helps to understand where it has been.

Look at historical home prices, sales activity, inventory, and days on market in the neighbourhood or city you’re considering.

Canadian resources such as the Canadian Real Estate Association (CREA), local real estate boards, and the Canada Mortgage and Housing Corporation (CMHC) can provide useful market data and housing information.

Don’t just look at the average price. Compare different property types and neighbourhoods to understand how the market has performed over time.

2. Review Housing Market Outlook Reports

Historical data tells you what has already happened. Market outlook reports can provide additional context about what industry analysts and organizations expect to see in the future.

CMHC publishes housing market information and outlook reports covering markets across Canada.

These reports can help you research factors such as:

• Housing demand
• Construction activity
• Rental market conditions
• Population growth
• Home prices
• Housing supply

Forecasts aren’t guarantees, so it’s important to consider them alongside other economic and market information.

3. Look Beyond Home Prices

A strong real estate market isn’t determined by home prices alone.

Research the broader economy of the area you’re considering. Employment, population growth, infrastructure investment, new development, and major employers can all influence housing demand.

For example, if you’re considering an investment property in a smaller community, research whether major employers are expanding, whether new infrastructure is planned, and whether the population is growing or declining.

For real estate investors, this information can be particularly important because employment and population trends can influence rental demand.

4. Compare Multiple Sources

Real estate information can come from people with different interests and perspectives.

Don’t rely on a single listing, social media account, news article, or real estate professional when researching a market.

Compare information from:

• Government sources
• CMHC
• CREA and local real estate boards
• Municipal planning departments
• Local news
• Rental market data
• Market reports
• Real estate professionals

Looking at multiple sources can give you a more complete picture of what’s happening in a particular market.

5. Research the Details That Matter to Your Investment

Once you’ve identified a market you’re interested in, go deeper.

Look at the specific neighbourhood and property type you’re considering. Important factors can include:

Housing inventory: How many comparable properties are available?

Rental demand: What percentage of households rent, and what are current rental conditions?

Property type: Are condos, detached homes, townhomes, or multi-unit properties in higher demand?

Employment: Where are the area’s major employers located?

Development: Are new residential, commercial, or infrastructure projects planned?

Population: Is the local population growing?

Comparable properties: What are similar homes selling or renting for?

The more specific your research becomes, the easier it is to understand whether a particular property fits your investment strategy.

Do Your Research Before You Invest

Buying real estate is a significant financial decision, whether you’re purchasing your first home or building an investment portfolio.

Online data and market reports are an excellent place to start, but they shouldn’t replace professional advice and your own financial due diligence.

At Sherwood Mortgage Group, we help homebuyers and real estate investors understand their financing options and prepare for their next property purchase.

If you’ve researched the market and you’re ready to explore mortgage financing for your next property, connect with the Sherwood Mortgage Group team.

The better you understand the market, the better prepared you can be when the right opportunity comes along.