Are “Move-over buyers” driving real estate price increases in new markets ?
Ontario
In London we have noticed a lot of buyers from the GTA investing in our city. Either buying investment properties or moving here for work. These buyers have been priced out of an expensive market. Are they driving up home prices in new markets? In London, it would appear so.
These buyers, ‘move-over’ buyers, are leaving the downtown core of the GTA for example and driving up prices in Southern Ontario markets such as Mississauga, Brampton, Durham, Barrie, Hamilton-Burlington, Windsor, London and Kingston.
Some reports are showing a 29 per cent year-over-year increase in GTA home prices in the first quarter of 2017 with Durham leading the gains at 39 per cent.
What about prices within a few hours of Toronto?
- Windsor-Essex + 17% increase
- London-St. Thomas + 13% Increase
- Greater Sudbury + 8% Increase
- Ottawa + 6% Increase
- Kitchener-Waterloo + 29 % Increase
- Hamilton-Burlington + 23% Increase
- Barrie + 33% Increase
BC
After failed government attempts at intervention in Vancouver, prices and demand both declined. Activity was slower for the detached market but low inventory is keeping the condo market alive. Prices in Greater Vancouver dropped 11 per cent in the first quarter of 2017 compared to a year earlier while sales were down 37 per cent.
Around BC, Victoria prices gained 12 per cent, Fraser Valley prices were up 4 per cent and Kelowna prices gained 13 per cent.
And the rest….
Meanwhile, prices were flat in Edmonton, up 3 per cent in Calgary, down 1 per cent in Saskatoon, down 2 per cent in Regina, up 5 per cent in Winnipeg, down 1 per cent in Halifax, up 12 per cent in Saint John and up 11 per cent in Charlottetown.
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