The Hot Real Estate Market Unlocks Value in This Software Stock
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Real estate has never seen such supply-and-demand pressures before. The rising costs of lumber and building materials have slowed down the construction of new homes. Meanwhile, record-low interest rates have increased purchasing power. Unsurprisingly, the average house in Canada now costs much more than it did last year.
Across the nation and across property types, prices are up. Units face bidding wars as first-time buyers compete with deep-pocketed institutional investors to grab any piece of real estate available. This historic bull market should have a positive impact on real estate software provider
Can’t Buy a House? Buy This Real Estate Stock Instead
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Real estate has gone from red-hot to white-hot in Canada. House prices are skyrocketing as the Bank of Canada continues to keep rates near historic lows. With inflation picking up and rates expected to rise, home buyers are frantically trying to lock-in mortgages at these record low rates. In so doing, bidding wars are taking shape all over the country. In Canada’s biggest cities, this effect is even more pronounced.
Accordingly, many young investors are increasingly getting priced out of the market.
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Often when stocks slump after earnings, the market is overreacting to some short-term headwinds that won’t impact the company long-term. Sometimes, though, it’s because new guidance or developments in the business have come out, and its growth potential looks to be impacted. For
Real Matters Inc(TSX:REAL), though, the latter seems to be the case. So if you were considering an investment, you might want to look for other top Canadian stocks to buy now.
Real Matters was rallying ahead of its earnings last week, but after the dust settled, the stock sold back off. The stock has been one of the most popular Canadian stocks in the past. Investors are intrigued by Real Matters’ potential as a technology company in the real estate industry.
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