Two biggest metros of Canada have engaged in the housing price war yet again! Just when To-ronto was leading the race in the real estate market revival, Vancouver jumped ahead to take an unexpected lead!
The month of October saw a slight slump in the housing prices in the six major metros of the country, including Toronto. But experts believe it is just a phase and not a trend. The resurgence of the real estate industry is here to stay!
The 2020 Housing Market Trend
According to the latest CMHC (Canada Mortgage and Housing Corporation) report:
The increase in exclusive short-term rental properties removed 1.5% rental homes across the nation or more than enough homes in North Vancouver!
Airbnb listings have added to the rental housing woes in addition to low rental property construc-tion and multiple restrictions on homeownership.
Toronto, Vancouver, and Montreal have the highest density of Airbnb properties. Thus, pushing the median rate for both rental and sale prices, unnaturally upwards.
This is harming the availability and affordability of the houses in the area.
In B.C. itself, the number of times short-term rental was opted for far outweighs long term rent agreements.
Short-term Rental vs Long-term Rental
As per Dany Papineau, a landlord, short-term rentals offer:
- Housing sales are said to crest in 2020 and 2021, especially in Ontario and B.C. regions, thanks to the availability of higher disposable income.
- House prices will see a dramatic growth by 2021 in Ontario, B.C., and Quebec.
- Home constructions will streamline in the coming months.
The in-favor Vancouver
Towards the end of October, Toronto witnessed a slight decline in its housing prices by 0.2%, while the usurper Vancouver saw an incline of the same amount. This is a huge jump in the city’s status for the first time in the last 15 months.
According to the National Bank of Canada and Teranet, Vancouver has been showing consistent revival since the month of August this year. Though late in the game, when compared to Toronto, the city is going strong.
Even though the growth falls short 7.2% from July 2018, the strength gains cannot be repu-diated.
As per Marc Pinsonneault, economist National Bank, the decline in prices is, in fact, making the homes more affordable for a buyer in the city, just like Toronto.
All in all, the city has achieved a 4.1% growth in house prices since last year.
Like Toronto, Hamilton, Edmonton, Ontario, etc. too witnessed a slight slump in October. While along with Vancouver, Halifax, Quebec, Montreal, and Calgary experienced an increase in their housing prices.
While the dip in housing prices is not alarming, the situation is now such that like Toronto, Van-couver and other cities in Atlantic Canada too are facing a shortage in housing.
While the market is currently balanced in Toronto and Winnipeg, the seller’s market has come to be in Hamilton and Montreal.