Niagara Falling feeling the heat from the high Toronto housing prices

Home prices in Toronto, Canada’s second most expensive city are becoming a major concern as the home prices are spilling over to other housing markets in the region. Last year, home prices in the city become impossibly high and although there have been numerous efforts to cool down the prices, there is still to be a positive effect from the implemented measures.

Toronto over the years has been a top destination city for local resident’s likewise foreign investors. Chinese investors flooded the city in search of homes and the government’s intervention to cool down the home prices in the Greater Vancouver Area by introducing a 15% tax on foreign buyers did little to calm the home prices crisis.

It only fuel price increases as countless foreign investors moved away from the heated Vancouver market in search of more affordable markets, making the Toronto housing market home prices to rise.
But the Toronto home prices are also affecting other neighboring markets and the Niagara Falls is just one of such regions.

Markets in the regions such as St. Catherines and Barrie are also having similar home prices like the Toronto province. This has led the Canada Mortgage and Housing Corporation to take a colder look at how the Toronto housing prices are affecting home prices in other regions.

Toronto and Vancouver have recently become the most unaffordable cities in Canada but while the Vancouver market in the last quarter of the previous year has begun to cool off, Toronto however still remains to be the priciest city in Canada.

Furthermore, the city is at a higher risk of going through a sudden drop in home prices. Last year, home prices in Toronto increased by 18% and have not cool down and at the rate the market is growing, it’s not showing no sign of cooling down soon, unless drastic measure are taken.

The Niagara region has also seen an increase in home prices as there was a 16% rise in prices by the end of 2016 with the average home prices standing at C$17,881.
In the meantime, the Toronto housing market has little influence on other markets in the region for quite some time.