The Booming Canadian Real Estate Market
The Canadian real estate market has seen tremendous growth recently, and 2015 was an active year, particularly in the provinces of Ontario and British Columbia. The average price of a as of mid-2015, and many analysts expect these figures to remain steady in 2016.
So what are the hottest and most expensive real estate markets in Canada right now?
Vancouver is one of not just Canada’s, but also the world’s most expensive areas to buy a home. The Real Estate Board of Greater Vancouver reported the average cost of a detached house in Metro Vancouver was $1.2 million, representing a 22 percent increase from 2014. In 2015, Vancouver saw an above the 10-year average, and the supply of housing remains low, so prices are likely to continue going up.
2015 was a record-breaking year for Toronto real estate. The Toronto Real Estate Board says there were nearly 5,000 residential sales handled by their members in December, which is the second-highest December ever listed. The average selling price for all types of homes, including condos, was $622,217, which was nearly 10% higher than 2014. Real estate demand is particularly high around the downtown and central area of the city, which is where buyers and renters flock to enjoy a bustling theater, dining and entertainment scene.
Montreal’s real estate may look like a bargain compared to Vancouver and Toronto, but it’s still ranked as one of the most expensive cities in the world. Montreal’s real estate prices are about $100,000 less than the national average for Canada, and the average price was around $340,000 in the city last year.
According to the Calgary Sun, Calgary has seen pretty steep declines in housing, with sales numbers falling 26% from 2014, based on statistics released by the Calgary Real Estate Board. There was a decrease in home sales of nearly 7,000 units in 2015 as compared to 2014, and every month in 2015 there was a decline in sales over the previous year. Much of this decreased activity was the result of falling oil prices, yet despite these dismal numbers, Calgary remains one of the most expensive markets in Canada. The in December was $462,786, although that number ticked down a bit in January to $434,744.
Victoria has an average home price of more than $421,000, and compared to Calgary, . With property assessments looming for homeowners, it’s anticipated most residents will see appreciation values of two to eight percent thanks to the city’s strong market. Home sales are particularly high in single family neighborhoods seen as the most desirable including Oak Boak, Caboro Bay, and North Saanich. According to the Demographia International Housing Affordability Survey, Victoria is the second least affordable city in all of Canada.
The Future of Home Prices in Canada
While some areas, particularly Calgary, may see falling real estate prices, most of the other major cities in the country are experiencing significant growth. Buyers and residents often worry they’re being priced out of the market, as housing prices top all records, and this uptick in home prices is leading Canadians to consider renting rather than buying.