“High demand and low supply continued to characterize Vancouver's and Toronto's housing markets throughout 2015 as competition from buyers over the limited inventory of single-family homes pushed prices higher,” RE/MAX said in its housing outlook for 2016. “The average residential sale price increased 17 per cent in Greater Vancouver and 10 per cent in the Greater Toronto Area, to approximately $947,350 and $622,150, respectively.”
Price appreciation is expected to continue into 2016, according to RE/MAX, with prices expected to increase 7% in Greater Vancouver and 5% in the Greater Toronto Area.
That’s good news for investors of all colours; those looking to cash out in 2016 will surely make a profit. As for landlords, continued upward trajectory for home prices will price many out of purchasing and force them into the rental market.
Investors in other areas may have more cause for concern, however.
"Based on the projections for Canada's key housing markets, RE/MAX expects the average home price in Canada to increase 2.5% in 2016," said Gurinder Sandhu, Executive Vice President, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "While we expect to see some price decreases, particularly in regions that rely on the oil and natural resource sectors, strong demand in Canada's urban centres is expected to continue throughout next year."
As for oil country – all is not bleak.
"In Alberta, a year after the sudden drop in oil prices, the housing markets have shown resilience," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "With oil price volatility continuing to make buyers feel uncertain, we do expect the average sale price to decrease next year, by 3.5 per cent in Edmonton and four per cent in Calgary."
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Investment Hot Spots:
Smiths Creek, Piedmont, Viceroy, Sainte-Marie-Saint-Raphaël, Gladwyn
The good times will continue to roll on for investors in Toronto and Vancouver – whether you’re a landlord or a flipper.