Prices of homes in Canada skyrocket in the year of 2016. Experts believe that the year 2017 will have more realistic prices due to the facts that new mortgage rules will be put into place and mortgage rates will rise.
The average price for a home in Canada hit $470.861 in December. This is an increase of 3.5 per cent from the earlier year (2015). This was reported by the Canadian Real Estate Association in 2016.
The pace of the growth went slower last year compared to other recent years. This slow growth pace is majorly due to Vancouver’s drop which was dragging the data of the whole country down. Toronto’s market has been very heated which has caused an imbalance.
Within a year, Vancouver’s residential sales had dropped by 40 per cent compared to the year before that- which held the opposite of this-. This drop took off a little steam from the city’s (Vancouver) house price growth. The average price for all housing types is $948,246 which is 3.4 per cent drop for the price of the year before.
House Supply is Disappearing
In 2016, sales grew strongly by 7.9 per cent in just one year in the GTA. The growing demand for houses in Vancouver pushes up the prices up to $730,472. This is a 19.9 per cent increase in just one year.
Lately a lot of fear has been growing among people who are thinking of putting their homes up for sale. This is mostly because of they are scared of buying a house in the situation that the market is on. Another reason is because they are scared the amount at which they sell the house now will increase later on when the market is better.