Based on figures reported by Statistics Canada, from October to November 2015, prices of new homes in Canada increased by 0.2 percent after 0.3 percent gain in October. According to Reuters Canada, Toronto and Vancouver lead in the overall increase amidst the current market conditions.
Previous reports said Vancouver's real estate market is expected to continue to heat up throughout 2016. According to a new report from Royal Lepage, prices are expected to soar in Greater Vancouver and the Greater Toronto area, where real estate appreciates faster than job growth or wage increase. There have been fears that these markets would overheat but according to News 1130, Royal Lepage CEO Phil Soper believes that the fast pace of Canada's largest housing markets will moderate later on this year.
On the other hand, Alan Stewart at Royal Lepage thinks it is still too early to tell. He said, "The indicators now are for more price increases so the longer you wait, the more it will cost you until there's a correction of some kind." He also added that the low dollar will keep enticing investors from overseas to the high-end real estate markets.
"All of us are expecting some kind of a softening in terms of the amount of increases. Effectively the rate at which prices are going up doesn't seem to be sustainable but we just can't see any indicator of things slowing down," Stewart said, according to News 1130.
As for Vancouver's commercial real estate sector, a previous report said that the Metro is getting a rise in demand for industrial space. This contradicts what some experts have predicted that high vacancy rates and plunging rental rates in the near future marks collapse in the country's largest real estate market. According to Global News, Colliers International managing director Maury Dubuque believes that Vancouver and Canada, in general, is by far an attractive choice for global capital.
