In recent years there’s been a lot of discussion about the affordability of homes in Canada, and whether we are experiencing a real estate bubble. A lot depends on location, as always when talking about buying a house. But the numbers on the ground where I live are concerning.
In March 2020 the average resale price of a home where I live was $590,176. A year later, March 2021, the price had risen to $744,775. A 26.2% increase in one year, which is a record-setting pace. The average house was appreciating in value over $10,000 a month. That makes for a very fluid marketplace. I was recently informed by a real estate agent that one local home had sold for more than $300,000 over asking. I do not live in Toronto or Vancouver, by the way.
I don’t know if this is a bubble, but it is a run-up that has to stop at some point. I don’t see how such inflation is sustainable. But will there be a collapse, or just a freeze or gentle deflating? And who is buying all these million-dollar homes anyway?
Alex Good 
Apparently there’s a property boom going on here too, well not so much where I am but definitely down south in London and surrounding areas. I don’t understand why.
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I’ve heard bad things about London house prices. It seems like there’s a lot of capital just washing around the globe looking for something to invest in and people see real estate as safe. In some market the properties can be rented out. Though I’ve also been hearing stories about more people leaving the big urban centers and working from home with the pandemic, which is a relocation that might be permanent for some. I mean, I’m sure living in London has its attractions, but how much of a premium does it demand if you really don’t have to live there?
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London is great for a weekend away but I wouldn’t want to live there. Too far from the sea.
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I’m with you. I was watching this video the other day and thinking I could watch these waves come in all day.
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That’s mad!
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It’s beautiful!
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Yes I love it when the sea’s up at tynemouth.
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Lovely! Yeah, you can’t get that in London.
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