Despite the fact that home prices in Vancouver and Toronto are getting under control, the new home prices growth rate was however not quite appreciable according to data from Statistics Canada. The data released on Thursday shows there was only a 0.1% profit in January and this was a disappointing figure as experts were expecting a 0.2% increase. For the past two year, the yearly profits have been increasing at a steady pace.
Home prices in Toronto however continue to increase but profits are still the same as they were in previous months. Housing activity in Vancouver was down as home prices cool down by the end of December 2016. But while some market spectators claim the drop is as a result of the tax imposed on foreign buyers, the market had actually begun to cool before the tax was implemented. With this being said, it points out that the two leading Canadian, markets had little contributions towards increasing profits. Ontario on the other hand did quite a great job at increasing profits as the Toronto high prices served as a boost for other nearby markets such as Hamilton and Kitchener where there was an increase of 0.3% and 0.8% respectively.
However the new regulations made by the government last year to help cool down home prices are expected to restrain the real estate market which has been vigorous during the period when the Canadian currency was weak.
Notwithstanding, the exhaustive effect of the laws will not be felt until later in 2017 while market activity at the beginning of the year very vibrant.