Toronto’s lack of inventory is expected to contribute to double-digit home price hikes, according to Royal LePage’s recently released home price survey.
“Since pulling ahead as Canada’s hottest market this quarter, speculators and prospective homeowners have increasingly begun to look to the Greater Toronto Area in search of real estate,” Dianne Usher, senior vice president, Johnston and Daniel, a division of Royal LePage, said. “The region’s strong economy has attracted interest from many Canadians and Americans in search of stability and employment, imposing further demand on stretched inventory levels in suburban areas across the GTA and intensifying an already incredibly high priced, competitive environment.”
Royal LePage is forecasting the aggregate home price in the GTA will increase 10% to $793,000.
Vancouver, meanwhile, is expected to see a market correction in 2017.
"After appreciating at an unsustainable rate for the better part of the year, prices across Greater Vancouver have begun to correct as a result of deteriorating affordability, a lack of quality inventory and heightened market uncertainty stemming from conflicting governmental intervention," Randy Ryalls, General Manager, Royal LePage Sterling Realty, said. "This has led to a decrease in competition for listings across Greater Vancouver, giving rise to new market conditions where prospective homeowners have more power at the bargaining table, causing prices to soften.”
Looking forward, the brokerage expects the aggregate home price in the Greater Vancouver area to depcreciate by 8.5% year-over-year.
Foreign investment, meanwhile, is expected to have less of an impact on the city’s real estate market than it has previously.
Agents in Toronto should prepare for unprecedented home price growth, while those in Vancouver will have to adjust to a new reality.