Redistribution of Canada’s Workforce Drives Further Price Appreciation in Greater Vancouver and the GTA

royallepage.ca-spotlights-hpsq1-enAccording to the Royal LePage House Price Survey, Canada’s residential real estate market showed strong year-over-year price increases in the first quarter of 2016.  The Greater Vancouver and Greater Toronto Area (GTA) real estate markets continue to lead the country in home price appreciation while Quebec shows promising signs of renewal, particularly in the Greater Montreal Area.

The price of a home in Canada increased 7.9 per cent year-over-year to $512,621 in the first quarter of 2016.  The price of a two-storey home rose 9.2 per cent year-over-year to $629,177, and the price of a bungalow increased 6.8 per cent to $426,216.  During the same period, the price of a condominium increased 4.0 per cent to $344,491.

“A glance at our national House Price Composite points to a very strong Canadian real estate market, yet the findings contain extreme regional disparities of the kind we haven’t seen in over a decade,” said Phil Soper, president and CEO, Royal LePage. “Like an economic triumvirate, the impact of rock-bottom interest rates, the low Canadian dollar and a rapidly expanding U.S. workforce are stimulating economic growth and housing demand in our largest metropolitan areas. Conversely in cities like Calgary, the ongoing drags in depressed energy prices and worrisome employment trends have taken a material bite out of sales volumes.”

“Redistribution of labour across the country is reinforcing disparities among housing markets, as the broader impacts of the oil recession on Alberta’s economy take hold.  For the first time in many years, we are witnessing an out-migration trend in the province, as economic conditions and employment prospects dim,” continued Soper. “We expect British Columbia, followed by Ontario, to be the top recipients of new household inflows in the coming year, which will further fuel housing demand and price appreciation in Greater Vancouver and the GTA.”

“Following a multi-year period of stalled economic and residential real estate market growth, the Greater Montreal Area is seeing a frankly wonderful upswing in demand and unit sales, which often foreshadows stronger home price appreciation,” said Soper. “While Quebec has been slower to reap the economic benefits of more affordable energy costs in addition to the big three factors driving markets elsewhere in Canada, the region is turning a corner.  My vote goes to Montreal as the city most likely to exceed expectations in 2016.”

To view the chart with aggregated regions and markets visit royallepage.ca/houseprices.

For more information see royallepage.ca/mediaroom.

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