A very intriguing column appeared in the Globe on Monday and it might set off an east versus west rivalry to trump all past rivalries (hockey rivalries excepted).
The column notes that price growth in Vancouver remains high (10.6 per cent year-over-year) but is running at less than half the rate of a few months ago.
Meanwhile, according to Robert Kavcic of BMO Nesbitt Burns, Toronto has been experiencing steady 9 per cent year-over-year growth since April and “could well jump ahead of mighty Vancouver next month.”
Yes, you read that right! Toronto jumping ahead of Vancouver? We know both markets are strong, but we’re just so accustomed to hearing about Vancouver’s supremacy that we can hardly believe it ourselves.
Mr. Kavcic had more to say about the potential housing market coup. “There are a few reasons for the relative shift: Vancouver valuations (relative to income) had blown well ahead of those in Toronto sales have cooled more sharply; supply is much tighter in Toronto,” he explained.
A little healthy competition never hurt anyone, so we’re looking forward to this market face off, it’s going to be a big one. In fact, if this were a boxing match, it would be pay-per-view level stuff, a real clash of the titans.
There were a few other interesting facts in the Globe article that don’t directly relate to the east versus west competition, but are worth sharing nonetheless:
- Canadian home sales rose 2.7 per cent in September from a month earlier
- Robert Kavcic notes that the market continues to appear healthy as low mortgage rates and lower unemployment offset consumer uncertainty and tighter mortgage rules
- Economist Sonya Gulati anticipates a tug-of-war to take hold in the national real estate market between low interest mortgage rates and only modest economic, income and employment growth
- She also expects “both prices and sales to hold fairly steady, relative to current levels, over the next year”