42% of Vancouver’s Housing Market has faded away
For the past few months the Vancouver housing market was a carbon copy of the hot Toronto real estate market, making then the two hottest markets in Canada.
But quite recently they have become so divergent one could never believe they were ever at the same peak. With the Vancouver market disintegrating, Toronto housing markets continues to reach higher grounds.
Greater Vancouver market prices skyrocketed earlier this month, leaving realtors wondering if it will cool down anytime soon and as much to the expectation of Canadians, the market began cooling down in October and with it came a 42.1% in money drop.
According to the figures from the Canadian Real Estate Association, in October of 2015 there was a cash flow of about $3.52 billion worth of transaction but that amount dwindled to $2.04 billion in October this year.
In the meantime, Toronto’s housing market increased last October by 34.2% from $5.55 billion. This figure increased in October 2016 to $7.45 billion.
British Columbia also experienced a drop in the housing market even though it had also climax in February. They had a 16.7% drop in October which many had claimed that it was as a result of the governments tax on foreign investors, but data proves otherwise as there had been a drop in the British Columbia housing market as early as February.
Grater Vancouver has also followed the trend with a 1.19% drop in prices.
Toronto’s standard home price has increased by 20% from 2015, and sales are 10% higher.
With the High prices in Toronto housing market, buyers and investors are moving to other affordable markets and areas such as Kitchener- Waterloo and Niagara region are desirable areas.
Taking a look at the overall housing market, there was a 2.4% increase in sales, and the nationwide standard increased by 14.6% which was mainly from the Toronto market.
Although the federal government had initiated new mortgage rules which came into effect on October 17, the effects of these regulations are yet to be known as such laws takes some time before their effects would be felt.