Over-valued Toronto and Vancouver Real Estate Markets
The soaring real estate prices in different cities of Canada is resulting people to move to the satellite cities nearby in search of better housing deals.
According to the BILDA (Building Industry and Land Development Association), average price of the new detached house in the month of March in the Great Toronto Area is around $1.05 million, 15% high compared to the previous year. A decade ago the price of the same detached
house was around $439, 294. According to another report, both Toronto and Vancouver are attracting a lot of activities and splurge in prices for the past couple of years. This is affecting the other nearby places around like Hamilton-Burlington and Barrie which is also facing an increase in the housing costs.
The chief of BILDA says that due to the supply-demand mismatch the prices of the houses are going up. Douglas Porter, chief economist of Bank of Montreal, says that only government reforms can deal with this situation but since 2008 there have been five federal reforms by the government to slow down the market. The supply doesn’t seem to ever see a splurge sooner. Due to insufficient overseas ownership data is unavailable, crackdown of foreign ownership’s impact on the housing market is also uncertain.
The high-rise market prices continues to be at an increasing state, but not very fast. The average new high-rise home saw an increase of 2% in price compared to March 2015 to $459,231 and a 4% increase in price-per-square-foot to $582.