NATIONAL SUMMARY
Vancouver and Toronto continued to see
significant price appreciation in the first quarter
of the year. Greater Vancouver’s average
residential sale price in the first quarter of 2016
compared with the same period in 2015 rose
24 per cent, while single-family homes in
the city of Vancouver crossed the $2 million
threshold. In the Greater Toronto Area, the
average residential sale price during the
first quarter rose 14 per cent to $675,492.
The competition in both Vancouver and Toronto among
buyers has discouraged sellers from listing their properties,
thus further reducing inventory. While sellers know their
homes would be quick to sell, many are reluctant to become
buyers themselves and enter the highly competitive market.
Also, some potential sellers are hesitant to list their homes
believing that home prices could appreciate further. However,
not all Canadians can wait out the housing market as many
are relying on their homes as a source of retirement income.
According to a recent RE/MAX poll conducted by Leger,
56 per cent of Canadians 55-64 who are considering selling
their homes are doing so to release equity for retirement.
Outside of Vancouver and Toronto, surrounding regions
continue to experience a spillover effect as buyers move
farther out in search of affordable single-family homes. This
has led to significant price appreciation in regions such as
Victoria (+10%), Hamilton-Burlington (+10%) and Barrie
(+14%). The population growth in these regions, driven by
housing demand, is growing local economies as restaurants,
shops and services expand.
In Canadian cities that have experienced an economic
slowdown due to the low price of oil, two factors have
been mitigating the short-term economic effects. Calgary,
for example, has a diversified economy after years of
population growth, while Edmonton and St. John’s are
benefiting from numerous capital projects in the region
including infrastructure investments and continued
investments from the oil industry.
Other areas of the country have benefited from the
return of workers who had left for employment
opportunities in the West. Regions that for years have
seen many of their young working population look to
Alberta for employment have started to see that trend
reverse. In Atlantic Canada, young people from outside
the urban centres who would have moved west several
years ago are now going to cities such as Halifax, which
is having a positive effect on those economies.
This trend is notable in Southern Ontario, where
manufacturing cities are able to provide good employment
opportunities as a result of the low Canadian dollar. Windsor,
which once had one of the highest unemployment rates in
Canada, is now trending below the national average.
In Canadian housing markets where prices have softened,
construction has also slowed to align with decreased
demand. This is expected to stabilize prices as population
growth catches up to inventory levels. Canada is on track
to welcome approximately 300,000 new permanent
residents this year: the highest number since 1913.
www.teambluesky.ca
Friday, May 13
Thursday, May 5
May To-Do List
Laura Gaskill
With Mother’s Day and Memorial Day coming up this month, there is plenty of incentive to get those outdoor spaces ready to entertain. Tick these 10 items off your to-do list so you can get to the good stuff: hanging out around the grill, kicking back on the porch and savoring the season.
Monday, May 2
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