A new report suggests that the driver of price increases for Toronto and Vancouver in the coming years is not foreign ownership but interprovincial migration.
The Royal LePage House Price Survey says there is an emerging trend of workers seeking new opportunities in Ontario and BC as the oil-producing provinces feel the impact of the oil downturn.
“Redistribution of labour across the country is further 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,” commented CEO Phil Soper.
House prices in Alberta are seeing decline in “varying degrees” the report notes. This follows the trend sales volume which has been declining for some months.
Across Canada, Royal LePage figures show a 7.9 per cent year-over-year increase in prices to an average $512,621 in the first quarter of 2016. In the GTA the gain was 8.4 per cent while Vancouver soared by 21.6 per cent.
“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,” Soper said.
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