Canada Real Estate: Alberta’s Mass Departure Could Improve Toronto And Vancouver
Canada's real estate market was being driven by factors such as low interest rates, foreign investment, and a waning Canadian dollar. The effect can be seen particularly in Toronto and Vancouver. However, real estate firm Royal LePage added one more factor to the list, which is a mass departure of workers avoiding Alberta's sluggish economy.
Canada's real estate market for first-quarter showed the median price of a Canadian property climbing to $512,621, which was a jump of 7.9 percent from the same month last year. Condominium prices increased 4 percent to $344,490, while bungalows rose 6.8 percent to $426,210 and two-storey properties went up 9.2 percent to $629,170.
Generally, the figures showed a good real estate market, but Royal LePage president Phil Soper claimed that there was also major regional disparities not seen in over a decade. For example, Vancouver saw a home value growth of 21.6 percent to $1,044,700 year-over-year, while Toronto housing values jumped 8.4 percent to $613,730.
At the other end of the spectrum, Regina saw its median home price drop 1.1 per cent to hit $327,610, while Calgary's decreased 0.6 percent to $466,180, according to a feature from The Province. For the first time in many years, the market was witnessing a migration trend in Alberta, as economic possibilities and employment prospects waned. British Columbia and Ontario were expected to be the top recipients of the influx of new households in the coming year, which will further improve housing demand in Greater Vancouver and the Greater Toronto Area.
Canada's real estate will not see B.C. and Ontario as the only areas with healthy housing gains in 2016. Home sales also rose 9.4 percent in the Greater Montreal Area in the first quarter. Luxury home sales worth over $1 million on the island of Montreal soared 14 percent, while sales of homes in the $500,000 to $1 million range increased 23 percent, Huffington Post reported.