The Canadian economy is believed to be heading into a recession in the first half of 2023.

When a recession sets in, the value of your stock portfolio may take a hit.

While this may seem like a downturn, it also creates opportunities to expand your portfolio.

Real estate, for instance, can offer you some stability.

Let’s take a look at three factors that can make real estate a good investment.


1. Low correlation to stocks.


Historically, the real estate market had a low correlation to stocks.

This means that even if the stock market is experiencing a downturn, there's little effect on the real estate market.


2. Recessions create bargains.


While a recession doesn’t always mean cooling off in the housing market, this time it’s exactly what’s happening.

We’ve already seen a significant drop in real estate pricing, and home prices are believed to hit above pre-pandemic levels nationally by the end of 2023.

This opens up opportunities for investment.


3. People still need housing.


Even when the economy is in a downturn, people need a place to live.

This way, by investing in real estate that you can rent out, you’ll be guaranteed to have a steady income.

Interested in investing? Stay tuned for our upcoming post to learn more!