According to Realtor Royal LePage, it was reported that Canada’s real estate market is expected to slow this year due to eroding affordability in Vancouver and Toronto, and especially the fallout from declining oil prices in the western region.
The realtor said the average home price in Canada has increased 6.5% to $500,688 in the fourth quarter of last year, compared to the same period the previous year.
If you’re seeking to purchase a two-story building, know that the average cost has skyrocketed to $610,134 in the quarter nationwide, which bring it up to nearly 8% compared to with the previous year.
Another price that rose is a bungalow, which rose to 5.4 per cent year-over-year to $420,082, as well as the price of a condominium which increased 3.1 per cent to $341,448.
Royal LePage says the average cost of a Canadian home is expected to increase by a more moderate 4.1 per cent over the course of 2016.
The company’s president and CEO Phil Soper reported a “frenetic” increase in certain large markets such as Vancouver and Toronto are likely to skyrocket.
“While most of the country will continue to see house value appreciation in 2016, we expect that the pace of price increases in Greater Vancouver and the Greater Toronto Area — where real estate appreciation has significantly outpaced job and wage growth — will settle to a more sustainable, single-digit price increase trajectory,” Soper said in a statement.