Royal LePage has released its House Price Survey, depicting strong price increases during the first quarter of 2016 compared to the same time last year. Leading in price growth are the Greater Toronto Area and Greater Vancouver Area, while the Greater Montreal Area is showing promising signs of renewal.
“A glance at our national house price composite points to a very strong Canadian real estate market, yet the findings contain extreme regional disparities of the kind we haven’t seen in over a decade,” said the president and CEO of Royal LePage, Phil Soper. “Like an economic triumvirate, the impact of rock-bottom interest rates, the low Canadian dollar and rapidly expanding U.S. workforce are stimulating economic growth and housing demand in our largest metropolitan areas. Conversely in cities like Calgary, the ongoing drags in depressed energy prices and worrisome employment trends have taken a material bite out of sales volumes. As a lagging indicator, home prices in Alberta and Newfoundland are just beginning to adjust to the lower demand.”
In the Greater Toronto Area, there was a year-over-year price increase of 8.4 per cent, but was outdone by the Greater Vancouver Area’s 21.6 per cent increase.
He continued, “Redistribution of labour across the country is further reinforcing disparities among housing markets, as the broader impacts of the oil recession on Alberta’s economy take hold. For the first time in many years, we are witnessing an out-migration trend in the province as economic conditions and employment prospects dim. We expect British Columbia, followed by Ontario, to be the top recipients of new household inflows in the coming year, which will further fuel housing remand and price appreciation in Greater Vancouver and the GTA. This is in sharp contrast to the situation from 2011 to 2014, and in the mid 2000s, when a booming energy sector attracted families from all over Canada to Alberta.”
Visit the full report here.