While construction is likely to pick up in Calgary to better meet demand for single family homes, taking some of the pressure off prices, Toronto faces a longer-term problem, Warren said in an interview. That’s because new-home construction has plummeted over the last few years in the wake of the provincial Places to Grow policies, which have pushed most new construction into higher density condo towers.
Overall, Canada’s real estate market “appears to be moving back into a more sustainable trajectory,” says the report, which focuses more on the global housing recovery.
During the first two months of this year, national sales were down 1 per cent, year-over-year, and about six per cent below the 10-year norm. That’s largely because of slow job growth, affordability challenges and “a widening gap between the cost of owning versus renting,” it says.
Prices, however, were up almost 10 per cent year over year — but really closer to half that, five per cent, when extraordinarily high sales in Canada’s priciest market, Vancouver, were factored out.
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