We have just come to the end of the spring buying season, typically the busiest season for real estate across most markets in Canada. With housing affordability a major issue in many parts of Canada, it was a very interesting spring indeed for prices. So what is happening in the property market in Canada as we enter the quieter summer period?
Here we look at the real estate markets in major Canadian cities. We know that Canada wants to welcome 400,000 new international residents, but is that demand boosting property prices? And what do you need to consider as a UK expat or holiday home buyer in Canada this year?
Toronto is one of the hottest real estate markets in Canada. In the last 10 years, the average home price has increased 119% with most of the gain in the last few years. In an effort to cool property prices the Ontario government has rolled out a number of measures which are outlined in the Ontario Fair Housing Plan.
On the back of a strong job market, and restrictions in both Vancouver and Toronto, many international buyers are turning to French-speaking Montreal instead
It seems some of these measures are already proving successful. This May, home sales in Toronto declined 22% compared to the same time last year putting downward pressure on prices. It is too early to tell if this slight downturn is permanent. Buyers looking to purchase a home in Toronto should consult with a local real estate agent for the latest market news and forecasts. Read more about Canadian estate agents.
Montreal saw an increase in demand this spring, possibly due to many investors looking outside of Toronto due to the new housing measures in place restricting foreign investment. Sales in Montreal are up 10% from the same time last year. On the back of a strong job market, and due to tighter restrictions to buy in both Vancouver and Toronto, many domestic and international buyers are turning to French-speaking Montreal to buy instead.
Canada is an affordable and surprisingly handy holiday home option. Why not split the cost and buy with family members? Read our new guide, Buying Abroad with Family.
You can’t go anywhere in Vancouver at the moment without a conversation about the local real estate market. In recent years Vancouver has experienced an unprecedented real estate market with price growth 78% in the last five years.
The first-ever national housing strategy will inject $40 billion into the Canadian housing market over the next 10 years
To battle the rapid price gains, which some say is due to a high volume of overseas investors, a series of taxes have been implemented targeting non-resident buyers and owners of holiday homes. New mortgage laws in Canada have also made it harder to afford property in desirable Vancouver. This spring, sales were at their lowest levels in the last six years and although prices have not fallen, many expect real estate to become more affordable in Vancouver over the next year.
The Calgary real estate market is beginning to make a slight recovery after crashing in 2016 when energy prices drastically declined. Unemployment and falling home prices have hit the province, which is the oil and gas capital of Canada, in recent years. Home prices increased a mere 0.3% between March 2017 and 2018. Although some analysts predict a slow and steady recovery, what does this mean for buyers now? There are some great property deals to be found in Calgary. Those who are priced out of buying a home in Vancouver or Toronto should consider Calgary as an alternative.
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Real estate is a hot topic across Canada right now. The Federal Government recently introduced a National Housing Strategy. This, the first-ever national housing strategy, will inject $40 billion into the Canadian housing market over the next 10 years. Will it make housing more stable and accessible across the country? Continue checking in at the Canada Property Guide to find out!