BMO Capital Markets have just released a report on Canada’s “Hot 3” – Calgary, Toronto and Vancouver – the three Canadian cities still experiencing boom-time conditions, with a combined year-over-year increase of 9 per cent in sales from June to August and were near pre-recession highs. Some reports have suggested that September sales have been ever stronger.
Meanwhile, sales in other major Canadian cities have fallen flat or even sink, said Sal Guatieri, a senior economist with BMO Capital Markets. For example, Regina saw a 2.4 per cent year-over-over fall in sales, while Victoria suffered a 9 percent decrease since 2010.
Guatieri predicts that “most regions won’t regain their former pep, as interest rates are likely to climb next year.” Interest rate increases are forecasted to occur late 2015; however, they aren’t expected to affect the robust real estate market of the Hot 3.
Economists are crediting 5 major factors that are driving the strong housing market in the Hot 3: record low interest rates, foreign investment, population growth, employment growth and the increase in echo boomers (the grown children of baby boomers), which were a major driving force behind the housing price boom in the 1980s.
In sum, if you are looking to move or relocate, the Top 3 seem to be relatively safe options. To learn more, speak to an experienced and knowledgeable sales representative with Century 21 King’s Quay today!