Hot Canadian housing market a ‘global anomaly?’

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Last year marked the 19th in a row for consecutive price appreciation in Hogtown. Prices have also increased 214% since 1996, according to one real estate firm.

"The overall strength and stability of Toronto's housing market is a global anomaly," Ken McLachlan, broker-owner of RE/MAX Hallmark Ltd., said in a release. "Very few large residential housing markets can compete with the GTA's performance over the past two decades."

Indeed.

The average price for a Toronto home in 1996 was $198,150; the average price for a home in Ontario’s capital is now $622,217, according to the Toronto Real Estate Board. That’s a 6.21% increase when compounded over 19 years.

Population played a major role in price growth, according to the brokerage. 6,055,724 people called Toronto home in 2014, up from 4,263,757 in 1996.

“The low interest rate environment has also influenced home buying activity in the GTA,” the agency said. “While the average residential mortgage-lending rate for a five-year term hovered at approximately eight per cent in 1996, the same product can be had for under three per cent in today's competitive market.”

For his part, McLachlan is bullish Toronto’s future.

"Moving forward, there is no reason to expect the upward trend to end," McLachlan said.  "In light of recent volatility in the stock market and overall economic uncertainty, we anticipate an upswing in home buying activity as investors look to tangible assets like bricks and mortar to ride out the storm. 

"The strength of the US dollar will also contribute, serving as an impetus for greater investment in the Greater Toronto Area throughout 2016."
  • RossK on 2016-01-14 10:30:40 AM

    A Registrant under REBBA is in violation of the act when making the type of statements attributed to Mr. McLachlan in this article. There is no debate on this issue, it is simply the law and Mr. McLachlan like all registrants has received repeated warnings from the regulator to not make them (even casually at a back yard bbq). Why you may ask?

    Many will notice Brad Lamb has changed his communication strategy in the last 12 months to try and coverup all the Google documents that place him in breach of REBBA.

    Real Estate Agents are simple Sales Representatives and that is why the government limits the type of advice or commentary they are allowed to make.

    The franchise company RE/MAX or the TREB Economist, are not registrants and are not subject to the Real Estate Council of Ontario which is why they can release the non-sense they do without fear of government prosecution. Registrants like Ken cannot.

    2016 is not 1990. Google now records every false and misleading statement that is issued by anyone giving advice. You need to search the Toronto Star archives right now to find the 1988/89 same non-sense that right now is being recorded today on Google.

    Calgary homeowners already last year were seeing 15% declines in their home's value but Average Selling Prices like Mr. Lachlan referenced in this article only dropped 3%.

  • Rob W on 2016-01-17 2:15:42 PM

    The real estate market in any city, province or even country is not so to predict or describe. However it would be nice to hwar from those actually doing the buying and selling

  • Rob W on 2016-01-17 2:17:30 PM

    Please cite your sources before making claims.

  • Eric F on 2016-01-24 8:20:23 AM

    It's not housing anomaly, it's an idiot people.

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