The condition of Canadian real estate is largely dependent on where the property is being bought. The State in question may have different property values than another State. Despite being volatile, unpredictable and different across district borders, Canadian real estate can present some interesting things to look at. The real estate values in Vancouver and Toronto have seen prices surging in recent times, which have left various sources wondering if a meltdown is on the horizon.
In Toronto, the rising prices of detached houses have put the State in tandem with some of the most expensive places to live in, in the world – cities such as New York and London. Despite this, there is still a steady stream of buyers looking to occupy detached housing in Toronto. Similarly, for Canada in general, the average price id a house is at least 50% more now compared to 2006, based on your location. At the same time, the burden of debts, including mortgage have been seen as disruptive to an average Canadian’s standard of living. According to the International Monetary Fund, there is an over-evaluation in the real estate market in Canada which could lead to a risk of a breakdown of the system.
In contrast, in Winnipeg, a lot of new houses were up for sale, a lot of which continue to be unoccupied, and the same was the case for the condo market in Montreal. Unlike houses, the demand for condos do not seem to be as high. Even in Vancouver and Toronto, homes were preferred over condos in general. Other than Toronto and Vancouver, in general, the prices of houses, especially resale houses have been slightly declining. Loss of employment, primarily in the federal public as well as energy based industries could be to blame for this decline. The rate of employment in a State can show strong waves of repercussion in the real estate market as well.
Canada experienced a slow growth of employment in the year 2016. Based on that, this year may not see a strong increase in the price of houses in various States, But given the state of the market, interest rates could increase over the next few years. Since over-evaluation in States like Toronto and Vancouver lead to high monetary demands to own a house, many young people tend to migrate to the suburbs to buy a home there.