13 April 2018

In the end, properties which used to be quite affordable become more expensive, and mortgage financing for higher priced houses is still unavailable for many potential move-up buyers.”

CREA says the average cost can’t show the real picture, as it’s pushed by the numbers in Toronto and Vancouver. That’s why it suggests focusing on MLS House Price Index, which adjusts for various types of real estate in different regions of Canada.

Bank of Montreal economist Robert Kavcic says March numbers look weak because of the comparison to extremely active month of 2017.

“Don’t forget that a year ago, the market showed top activity, so this comparison is not fully fair,” – he noted.

Markets of Toronto and Vancouver, which previously pushed the average numbers higher, now are responsible for most of the drop.

“The switch in sales from expensive Toronto and Vancouver detached houses to cheaper condos/semis/townhouses pulls down the average results, even in case the cost of each property hasn’t changed,” – he added.

If you don’t have to sell your house to buy a new one or if you want to upgrade your condo for something bigger with a small piece of land – it might be the unique time to snap a starter house in Toronto or GTA!