Real Estate Bubble Put To An End; Cause For Alarm
The situation in Canada concerning the increase of home prices has caused the economy of the country to go up, despite the hard rock prices and lower energy. Places like Alberta and Saskatchewan that have harbors loaded with oil are struggling, other regions like British Columbia and Ontario are trying to pick up the pace because of the housing markets that are under pressure.
Unlike last year’s levels, the province of Vancouver has experienced the benchmark price of homes go up by 25%, with the average selling price reaching $1 million. There is high anticipation by Royal Lepage, for the prices in Vancouver to go up by 27%, together with an increase of 15% in the Toronto Market.
The CEO at Royal Lepage said; “I believe it is the highest value put forward by a serious forecasting agency since the turn of the century.” The administrations of both Vancouver and Toronto will have the foreign buyer taxes focused on regulating the blazing real estate market. This is not the end, thus it will greatly affect the economy of Canada.