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Canadian Housing Market Experiences Slower Growth in May

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The residential real estate market in Canada may finally be starting to cool down. Housing prices increased in May by roughly five percent, which is about three and a half percent less than the increases experienced in previous months.

The performance of the market varied across the nation, with some cities posting significant losses while others posted tremendous gains. The city of Vancouver was one of the hardest hit, as the total number of home sales dropped by sixteen percent. Toronto appears to have finally started to cool after many months of unprecedented growth.

The Toronto market still posted a double-digit growth in overall sales, though the rate of growth dropped tremendously. The Toronto market experienced an increase in sales of eleven percent. That number, while still very strong, pales in comparison to the eighteen percent growth seen in previous months.

Economists have worried that Toronto may suffer the same fate as Vancouver, which has started to go through a major decline. The condo market in Toronto has been one of the driving forces of the city’s real estate market over the last year. The increase in demand led to a massive increase in condo development. However, real estate experts believe that supply is starting to exceed demand as the number of newly built condos continues to flood the market.

The city that posted the strongest gain in its residential real estate market is that of Calgary. Calgary experienced an increase of more than thirty percent over the total number of sales from last May.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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