Canada’s real estate market has been highly volatile over the last years or so due to the massive turmoil in the oil and gas industry. Before the industry suffered, Canadians were witness to unprecedented levels of real estate growth, which sparked fears about a US-style collapse. However, thankfully, that has not materialized and as we move into 2017, there is little to suggest that the market is going to come crashing down on us.
Vancouver will lead the way
Vancouver is expected to grow the fastest of all Canadian cities in 2017 with GDP growth expected to be over 3%. Employment gains, especially among millennials, are expected to drive sales and housing starts as we can expect to see a surge in the rental market. As rental units are in incredibly short supply in Vancouver, we can expect a lot of construction. Foreign buyers, especially Chinese buyers, seem to be unaffected by British Columbia’s high property transfer tax as they are able to afford the sky-high prices.
Toronto is not far behind
The average price of a home in the Greater Toronto area surpassed $1 million dollars recently, which is a startling indicator of the Toronto market. Toronto is the same as Vancouver as its economy remains robust and healthy. Toronto’s condominium inventory hit a ten-year low in 2016, but demand only seems to rise. The city’s GDP is expected to rise by at least 2.5% so we can expect to see a surge in high-rise multi-residential projects in the coming years. Urban migration continues to boost the economies of both Toronto and Vancouver.
Canadian homes make more than the people living in them!
While you are busy working hard, your home is sitting and doing nothing and still making more money on average. In 2016, the average income of a Canadian was marginally lesser than $50,000 while the average price of a home dwelling rose by $50,619. A robust luxury market played a strong role in the rise as rental prices have also soared in cities across the country. Maybe becoming a house is a profitable career avenue!