The Canada Mortgage and Housing Corporation (CMHC) confirms this: housing prices did rise sharply in Toronto and Vancouver between 2010 and 2016, while they rose slightly in Calgary and Edmonton and he has not risen in Montreal during this period.
In its “Review of Housing Price Escalation in Canada’s Large Metropolitan Areas,” “a Review of Housing Price Developments Among Canada’s Most In-Depth Homes,” the federal government says economic and demographic growth and low mortgage rates have contributed to rising housing prices across the country.
Toronto’s home price rose the most, with the seven-year average price rising 67% to more than $ 700,000. This increase was more than 60% in Vancouver, raising the average price to nearly $ 1 million.
Meanwhile, prices have gained nearly 20% in Montreal.
For Calgary and Edmonton, CMHC provides only the price increase between 2010 and 2014, which is 17% and 15%, respectively. The organization is content to say that the average price of homes has “retreated from the second half of 2014,” because of the “decline in crude oil markets.”
The increase in Toronto and Vancouver was mostly reflected in more expensive single-detached homes.
As for the demand for condominiums, it has increased during this period.
Houses over 1 million
In its report, CMHC notes that in seven years, the sale of over $ 1 million in homes, mostly single-detached homes, has increased by 14 per cent in the Greater Toronto Area from 3 per cent in 2010 to 17 per cent in 2016.
In Vancouver, 35% of single-detached homes sold cost more than $ 1 million in 2016. This proportion was 14% in 2010.
This significant increase in home sales exceeding one million did not follow the same trend in Calgary and Montreal. These homes accounted for only 3% of real estate sales in Calgary and 2% in Montreal in 2016.
There has been a lot of talk in recent months about the influence foreign buyers would have on home price increases, particularly in Toronto and Vancouver. These, willing to pay the high price, would have driven the market upward.
CMHC does not seem so certain of the truth of this hypothesis. It states that “it is still difficult to determine the extent of foreign investment to understand the demand for housing.”
However, it indicates that non-residents own 4.9% of residential properties in Vancouver and 3.4% of them in Toronto.
“While official data on the rate of foreign homeowners appear to be weak, it is possible that the perception of the impact of their presence on the market will alter the expectations of Canadian home buyers as to the price they should pay for their homeownership. to stay, “concludes the organization.