Based on a comprehensive report, the correction of price in Vancouver will predictably play a huge role in the growth of a more moderate home price across Canada. However, that does not put an end to the before most blazing market in the country.
The president of Royal LePage, Phil Soper told a news reporting firm; “If were to call for an 8.5% correction in Ottawa or Montreal, that would be a huge deal. It would represent a market crash because the price appreciation has been moderate. In Vancouver, when you see prices rising at the rate they have been rising in the mid to high 20s, 8.5% in that context seems moderate. Think of it this way, in relative terms, rather than rising by 26% you’re going the other direction by 8.5%, in market terms that are a significant market turnaround. It is a significant change but it’s not unexpected.”
Based on the housing market report that was disclosed for this year, there is high anticipation by the brokerage for the home price appreciation gap narrow in this year, and more traditionally hot real estate market to lean towards a more chronological standard. Vancouver being included is predicted to face a decline in their home price, while areas like Toronto will have a different fate.
Phil mentioned in a report, saying; “Like Greater Vancouver, the Greater Toronto Area markets we studied in our House Price Composite are seeing double-digit year-over-year home price appreciation across the board. However, these two regions, often grouped together as Canada’s booming real estate markets, are on divergent paths. Unlike Vancouver where a price correction is underway, there is no relief in sight for the GTA – forward momentum and supporting fundamentals in the region are that strong. And it is worth noting, Toronto area home prices are much lower than those on the west coast.”
Due to the hard-hit market in Alberta, the economic storm has been weathered down and less destructive as imagined. Sopher continued saying; “What consumers don’t realize when they read a report like ours is how hard the market was hit. What they don’t see is the volumes were down 20%,” Soper said. “It was a very hard-hit market but the province went into the oil crisis with the tightest reno market, the youngest population, the lowest unemployment rate. So if there was any province in the country that could handle a downturn.”