Despite all the actions aimed at reducing the real estate activity in Toronto and Vancouver, home prices are still rising sharply in those markets. As a result, many potential buyers were left out of the detached houses market, and even condos are showing prices growth.
According to ReMax, this year, the average price for all housing types was up by 13% to $1.02 million in Greater Vancouver, and up by 17% to $725,857 in the GTA. Meanwhile, the average cost of a detached house in those two markets exceeds a million, and next year the numbers are expected to go even higher.
In the same time, the number of single-detached homes constructions in the country is going down – in fact, since 2009, says Canada Mortgage and Housing Corp. (CMHC). Strong demand with a weak supply always leads to higher prices.