According 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 Toronto (GTA) and Greater Vancouver Area real estate markets continue to lead the country in home price appreciation, with Canada’s economic landscape supporting robust housing demand in these metropolitan areas.
Additionally, an emerging trend of inter-provincial migration to Ontario and British Columbia from commodity-focused economic regions such as Alberta is expected to put further upward pressure on home prices in these areas in the coming months.
“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,” said Phil Soper, president and CEO, Royal LePage. “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. This is in sharp contrast to the situation from 2011 to 2014, and in the mid 2000’s, when a booming energy sector attracted families from all over Canada to Alberta.”
The Royal LePage survey also showed a noticeable divergence between Canada’s two hottest markets: while the GTA sustained its trajectory of an aggregate year-over-year home price increase in the 8 per cent range (8.4 per cent), the Greater Vancouver market accelerated at rarely seen appreciation levels, surpassing a 20 per cent (21.6 per cent) aggregate year-over-year home price increase for the region.