Jul 09, 2020 : Pamela Heaven
Canadian home price growth will slow in the second half of this year and gently decrease through the following year. This is the prediction from a new study done by TD Economics.
Before the COVID-19 pandemic, immigration was a big driver of the housing market, since the federal immigration targets were raised from 2016 to 2019. TD Economics’ Rishi Sondhi said that COVID-19 has “thrown sand in the gears of Canadian population growth.”
The most fragile increase in population since 2015 took place this year where the national population only expanded by 75,000 in the first quarter. It hasn’t improved yet, either. TD’s Information shows immigration to Canada dropped by 80% year over year in April 2020.
Despite the drop in immigration, real estate prices rose in June all over the GTA.
- Toronto prices rose 11.9% compared to June 2020.
- Hamilton’s average home price rose $105,726
- Kitchener-Waterloo area home prices rose 13.1%
- St. Catharines home prices rose 11%
What does this mean?
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