Limited market supply will support housing prices growth
According to the recent report by Oxford Economics, reduced supply in the Vancouver and Toronto housing markets will become a key factor supporting the increase of national real estate prices this year.
“This forecast is based on a moderate slowdown in market speculations and foreign buying activity combined with the continued price growth, caused by the non-speculative demand and limited supply,” – the report says.
Real estate prices were up by 50% in Vancouver since 2014, while GTA showed a 35% increase during the same period.
Full-time sector is getting weak, while part-time jobs keep growing
Last year, Canada’s labour market showed great increases, however, the growth was supported by sharp gains in the sector of only part-time jobs. Meanwhile, in case of the previous years, the largest gains were reported in the full-time sector.
According to Statistics Canada, there were 153,700 net new part-time jobs created in 2016 and only 60,400 full-time positions. The result was so weak, it turned out to be statistically insignificant.
According to the Toronto Real Estate Board (TREB), in December, the GTA's average home price rose by 20% annually and reached $730,472.
High housing sales, reported last month, made 2016 a record year for GTA realtors.
The board says there were 5,338 sales of all types of residential real estate made, including condominiums and detached houses. It’s 8.6% higher than a year ago, even in spite of the reduced market supply.
TREB’s house price index, which is adjusted for various kinds of housing, went up by as high as 21% last month.