Following double-digit price increases for homes in Greater Vancouver and the Greater Toronto Area, they will ease significantly in 2017 according to Re/Max.
In its housing market outlook, the firm calls for an average 2 per cent rise in Greater Vancouver prices (13 per cent this year) and 8 per cent in the GTA (17 per cent this year). The average nationally will also be around 2 per cent.
High prices in the hottest markets have escalated buying – and prices – in surrounding cities. For example, Hamilton-Burlington has risen 20 per cent this year along with the Fraser Valley.
Re/Max forecasts stronger activity for Calgary and Edmonton, however this is dependent on better employment prospects in the energy sector and will not be seen until the second half of 2017.
Regina, Montreal, Saint John and St. John’s are all forecast to show an increase in their economies and real estate markets as higher inventory boosts home-buying.
The recently-introduced policy changes will have mixed impact. Re/Max expects the 15 per cent foreign buyer tax in Vancouver to benefit other markets, as international buyers seek alternatives. The federal mortgage regulation changes are not expected to have a long-term impact in most regions.
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