The Canadian Real Estate Market

  • Canada is one of the safest and fastest growing Countries in the World
  • Canada’s urban areas have the fastest growing real estate construction development in all of Canada
  • Since 2005, the appreciation value of single detached homes in Toronto have risen with a steady average of 10%  year over year
  • Canada’s banking system is ranked #1 in 2008 by the World Economic Forum (WEF) which in turn makes for a stable housing market

The real estate market in Canada has been steadily growing for the past 20 years. This provides a great opportunity for international students who want to study abroad and grow their family’s investment portfolio in Canada. Due to the high number of immigrants coming into this country places like Toronto and Vancouver have prospered in real estate market investment. 

Canada is one of the fastest growing countries in the world and it has overcome major challenges and obstacles even when faced with global recessions. From 2008 until now, Canada was ranked #1 by the World Economic Forum in its banking system with the healthiest and soundest balance sheets 1. This in turn has helped the Canadian Real Estate Market grow and expand farther than it ever did in the early 1980’s and 1990’s.  Thanks to the Bank of Canada, interest rates for the past decade have been kept fairly low (1.75% as of September 2019) and Canadians including immigrants have flourished to invest heavily in the real estate market in vast populated urban areas. 

Over the past few years however, there have been stricter rules implemented by the government of Canada. By including a series of taxes and mortgage rules they have been able to tighten the market in order to slow down the heated housing markets in some areas including Toronto & Vancouver. That has not though, impacted the price of residential condos and homes in and around very popular and highly demanded areas. In fact, as of the beginning of 2008 the condo market in Toronto has been increasing due to the growth of demand and increasing population that has been overwhelming the dense populated areas. Since 2017 after the foreign buyer’s tax and mortgage stress testing rules (January 2018) were presented – Toronto and Vancouver detached home prices have still risen year over year 2. Now that the mortgage stress testing program have been removed, the market has been slightly increasing and prices are only going to go up.

The province of Ontario has funded major construction developments in public transportation so that has in turn increased the number of condos/houses  being developed in around Toronto and it’s major outside areas around the new public transportation routes. The real estate appreciation value of properties in Toronto has risen on an average steadily percentage of 10% since 2005 3 and it still has room for growth. From now until 2030 there is only going to be an influx of population increase in Canada so that can only mean that real estate development will only keep expanding in major urban cities. Since the Liberal party of Canada has won a second term this can only mean positive news for international students who want to settle in Canada not just for studies but to work and grow their families. We will explore the real estate landscape here in Canada more in depth in more blogs to come. Please follow us and stay tuned. 

  1. Martin, Will Rob. “These are the 17 countries with the safest banks in the world.” Business Insider, Bild,DieWelt, and Fakt Axel Springer, 24, October, 2017, https://www.businessinsider.com/world-economic-forum-report-on-the-countries-with-the-worlds-soundest-banks-2017-10
  2. Anderson, Tyler, “September home sales surge signals the real estate market is returning to equilibrium”, National Post, 11, October, 2019, https://business.financialpost.com/real-estate/september-home-sales-surge-signals-the-real-estate-market-is-returning-to-equilibrium
  3. Listing.ca: https://toronto.listing.ca/real-estate-price-history.htm