Canada's largest housing market - accounting for 19 per cent of national sales - continues to defy concerns of a correction, according to a new report from BMO Economics on Canada's major housing markets.
The report titled "Canadian Housing Update: Tale of Four Cities" examines the state of the housing markets in Canada's four largest cities: Vancouver, Calgary, Montreal and Toronto.
"Across Greater Toronto, sales are up 20 per cent year over year in the three months to October, and stand 9 per cent above past decade norms," said Sal Guatieri, Senior Economist, BMO Capital Markets. "While preliminary figures show sales slowed in November, markets are generally balanced; but sellers rule and bidding wars prevail in certain pockets. Benchmark prices have picked up to an above 4 per cent pace, and, at over six-times median family income, remain lofty."
The report shows that after plunging last year, new condo sales have firmed but remain well below the past decade norm. "Condos are an affordable alternative to the detached market for the more than 80,000 international migrants moving to the region each year and the growing number of young people leaving their parents' basement," stated Mr. Guatieri. "While low rental vacancy rates have kept resale condo prices near record highs and rents on an upward course, prices of new condos have weakened modestly in the face of a record number of units under construction - close to 60,000."