The principal at Canada Mortgage and Housing Corporation and at Market Analysis Centre, Jean-Sebastien Michel said; “Our evidence supports that increasing single-family home prices in the GTA are persuading buyers to make purchases in nearby communities like Hamilton, Barrie and Guelph where homes are more affordable than within the city. In turn, this is driving up house prices in these neighbouring markets.”
Buyers are being pushed to buy a house outside Toronto because of the soaring prices of a single-family home as released in the recent Housing Market Insight Report by CMHC. Guelph, Hamilton and Barrie are seeing the effect over the recent years, with other wide-range markets also seeing the impact, most especially in St. Catherines-Niagara.
CMHC commented; “Except for the clear but short decline in many centers in 2008, house prices have steadily increased in most Ontario CMAs over the past twenty years, with even higher growth rates in the last five years. Overall, this substantial increase was due mainly to favorable economic conditions, population growth and relatively low mortgage rates, which increased demand for housing and drove up prices.”
After a downturn in Toronto, the housing market has been getting better and recovering at a faster pace than its nearby CMAs. On the other hand, it seems like markets in the surrounding area are gaining from the hottest real estate market in Canada.