Larger Image

The chart above shows the average detached housing prices in December for Vancouver, Calgary, Edmonton, Toronto, Ottawa* and Montréal* as well as the average of Vancouver, Calgary and Toronto condo (apartment) prices (Left Axis). On the right axis is the MLS Annual Total Residential Sales across Canada; the most recent data point being a projection to year end.

Condos in 2015 Are Going Up Up Up

To make a prediction for Canada’s crazy housing market would be, well, crazy, but like RE/MAX Condos Plus, some agents believe it’s safe to say high-rise living will continue to post strong gains in major markets – especially for larger family-friendly units.
 
“I think this will be another solid year for [condos],” says Matt Elkind, an agent with The Condo Store in Toronto. “The demand is going to continue. That trend away from houses, just with the prices of housing going up dramatically, more people are happy being downtown and living the condo lifestyle.”
 
RE/MAX Condos Plus said it expects demand for larger units – particularly those with two bedrooms or more – to increase, especially for two of Canada’s most active demographics moving up and down the property ladder.
 
“It’s two things really,” says Armand Gilks, a sales rep with Bosley Real Estate in Toronto. “One is people downsizing, and the other is people currently in condos and, as their need for more space as their families grow, many are opting for larger condos rather than low-rise housing.”
 
Immigration is also expected to boost condo demand in 2015. The RE/MAX report suggests Toronto requires more than 35,000 units annually to keep up with in-migration – meaning the 20,000 units currently being completed will lead to a shortage.
 
“I do see demand for larger units growing,” Gilks says, “and this is especially as the condo market matures.”

More: 

Is it too late to get into Hamilton’s hot housing market?

Investor returns will be down in 2015

In November 2014 Edmonton single family detached average prices (green plot line) hit a new historical high while the rest of the big city metros took a break under their respective highs in a year that is seeing the total MLS sales across Canada project the biggest single sales year since the 2008-2009 plunge.

It remains interesting to note that the combined average price of a Vancouver, Calgary & Toronto condo is currently 26% more expensive than a median priced Montreal SFD and note also that in the spring of 2006, those 3-City average condos zoomed 58% in price (over $100,000) in just 3 months as the buy side of the market freaked out over the inversion of the 10yr less the 2yr spread as it went negative (Yield Curve). 

Mattress money has gushed into condos with no respect for fundamentals or plan for contingencies that may be required if Pit of Gloom II develops and one must write off capital gains and rely on employment earnings.

The average detached housing prices for Vancouver, Calgary, Edmonton, Toronto, Ottawa* and Montréal* as well as the average of Vancouver, Calgary and Toronto condo (apartment) prices (Left Axis). 

On the right axis is the MLS Annual Total Residential Sales across Canada; the most recent data point being a projection to year end. 

Rents up 6.5% in San Francisco, & 4.5% in numerous other cities. 

“Owners’ equivalent rent and rent of primary residence, which together account almost of a third of the CPI basket, are turning up strongly.

….read more HERE

Michael interviewed private and alternative investment expert Craig Burrows on his three favourite real estate markets and the three MUST ASK questions before considering any real estate investment.

CLICK BELOW to listen to the full interview.

{mp3}grant/craiginterview{/mp3}