There have been many conflicting reports about the state of Canada's real estate prices. Prices have risen considerably in urban markets, and some have voiced concerns that the growth has been too quick. A recent report found that housing prices in Canada saw a 13.3% year-over-year Q3 increase, with rates rising in larger Ontario, British Columbia and Alberta cities. One residential real estate expert believes the current rate of appreciation is manageable and healthy.
Optimism about the current state of the market comes in part from rising interest rates and a strong Canadian dollar. This is expected to temper domestic demand, lessening the possibility of unmanageable appreciation rates. Residential real estate experts are keeping a close eye on large cities, where the cost of housing has been rising at a higher rate in recent years. Toronto and the GTA, Ottawa, Montreal, Vancouver, Calgary and Edmonton are all being closely watched.
The Alberta cities of Calgary and Edmonton saw year-over-year increases of 5% and 4% respectively. The aggregate price of a home in these areas currently sits at $479,211 for Calgary and $389,330 for Edmonton. These numbers are strongly influenced by the provincial economy, which continues to rebound from its recent oil recession. Drilling activity has increased from last year's levels, with the Alberta government forecasting a price of US$55 per barrel in its 2017 to 2018 budget.
The residential real estate market can be affected by many different forces, including interest rates, the local economy and international demand. Those looking to purchase a home in Alberta should be aware of the changing nature of the marketplace. They should also work with a lawyer to understand the legal steps they must take in buying a home.
Source: Advisor.ca, "Is Canada's housing market too hot?", Oct. 12, 2017