The global housing market is constantly evolving. Not least in Canada. Which is why, in today’s column, we have decided to talk extensively about the real estate of this very special nation. If you’re about to find out how the Canadian brick market is currently moving. And more importantly, why prices are rising! So, if you’re ready, we can get started!
The data speaks for itself. As far as the Canadian housing market is concerned, prices are still rising, and we don’t see this trend stopping anytime soon. But one of the challenges we are also seeing is an increased demand for housing. According to statistics, the Greater Toronto market remained a strong seller’s market in December. Rising home prices have put homes out of reach of a growing middle class. As more people enter the workforce, they have higher expectations for what their finances can support. House prices are no longer affordable for many.
The record increase in prices in the GTA was no accident. It was probably an indication of the change coming, at least for certain types of homes. The statistics also highlighted the surprising success of the condo market in Toronto. Last month, a multi-unit complex sold for $1,050,000. The average price of a unit was $970,000. Over the past decade, this is an incredible $450,000 increase. In June The housing market in the Greater Toronto Area saw another drop in sales in June. This time, however, the change was not the result of a lack of demand. Average sales prices continue to rise and sales volumes are down.
House prices in Canada have risen steadily over the past ten years. On average, prices increased by about 7% per year in the early 2000s, before the real estate crash that began in 2008. Since then, prices in Canada have risen by an average of about 4.5% per year. Is Canada at an ”affordable” stage for buyers? The simple answer to the above question is “No”. Prices are rising faster than wages and incomes, and expectations are that prices will continue to rise at this rate. The recent increase in house prices has occurred over the last two years, and is currently at an all-time high.
We will see many surprises in the coming years. After all, the next recession is not that far away. Now that the slowdown in Canada’s real estate sector is finally over, we will see some sharp changes.
So, would you like to know more about the Canadian housing market update ? If the answer is positive, you just have to stay updated on our portal. Always here. Always on Realigro!
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