No matter where you are in Canada, recent fluctuations in oil prices do have a profound effect on your property’s value as we’ve blogged about earlier this year. Find out how and more about this topic by reading on below.
The Seesaw Effect
Generally speaking, the decreasing price of oil can cause a slowing down of home sales in the west and an increase in prices for Toronto’s real estate because economic activity will shift from west to east if the current trend in oil prices continues. Together with the booming U.S. economy and increased activity in the Greater Toronto Area, housing needs would surge in the area and so will the prices follow.
The effect is not an entire shift but yes, there would be a marked difference. With everything considered, there would still be an average of 2.9 % increase in home sales and value across Canada with an estimated increase from $407,500 last year to $419,318 this year.
The Toronto Housing Rush
Recent estimates say that Toronto will be leading the charts when it comes to average price increase for 2015. They forecast that homes in Toronto would cost an average of 4.5% more than their previous value – a considerable amount although it is significantly lesser than last year’s estimates due to the continuing increased demand for housing in Toronto and nearby areas.
If we would take a look at the average resale value of houses and condos in the GTA, it was $524,089 in 2013, $566,500 in 2014, and an estimated average of $592,000 for this year.
The Scoop on Real Estate 2015
If not for the sudden change in Canada’s economic condition, the housing market in Toronto would have been at a much slower pace and that would of course also affect local businesses.
Aside from Toronto with a projected price jump rate of 2.8%, Calgary is also expected to have a very favourable 2015 with a projected real estate price jump rate of 2.4%. This data is taken and compared with several other major centres all over Canada.
This trend may be just short term but agreed that the most positively affected area right now is Central Canada. With how things are going with oil prices, it is highly unlikely that interest rates are going to surge up this year and that is of course, a very much welcome news.
As for other major population hubs, Vancouver still remains as the country’s hub of the most expensive real estate, with an average home price of $835,000. Halifax, Winnipeg, and Montreal are expected to flatline as far as growth is concerned and Ottawa and Edmonton are expected to have gains of 1.8% and 2.5% respectively. Regina is expected to have a decrease of 1.3%, which makes Toronto’s projected 2.8% gains look much more attractive. We surely are glad Oakville is part of GTA!
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