Toronto’s Real Estate Board has reported an increase in real estate sales in the second half of 2019. Their most recent figures have presented an average home price of CA$910,419, which is almost a CA$100,000 up from last year’s figures, which is at CA$840,391.
The 2020 House Market Predictions reported a statement from Zoocasa, a Toronto-based real estate brokerage, about the recovery of the market from the 2016-2018 boom-bust cycle. It means that the housing market in Canada will continue to rise to recover the loss it experienced 3-4 years ago.
Contributing factors to the skyrocketing prices in the housing market include domestic and foreign investment in real estate and the loosening of the regulations set by the government on foreign buyer’s tax and mortgage restrictions.
While the increase of demand for real estate, for any purpose, continues to dominate the market, the supply of houses on sale is falling short. Thus, the price increase starts to spike up in the latter half of 2019.
However, Zoocasa said that the price increase is not to be feared as mortgage rates remain cheap in the next few years. Nonetheless, millennials are going to have a hard time buying a house soon while the price increase continues to rise.