Home prices across Canada are set to jump this year as interest rates are kept near record lows by economic uncertainty from the U.K. referendum to leave the European Union, according to brokerage Royal LePage.
The average house price will rise 12.4 percent from 2015 to C$563,000 ($434,000), the highest year-over-year forecast from a real estate firm since at least 2000, Royal LePage reported Wednesday. With turmoil from June’s Brexit decision filtering into Canada’s economy, homebuyers can expect mortgage rates to stay low and steady demand to continue to push prices higher, said Phil Soper, the brokerage’s chief executive officer.
Price gains will be led by Toronto and Vancouver, the country’s hottest housing markets. The average price of a Vancouver property — including condominiums, two-story homes and bungalows — will surge 27 percent from last year to C$1.2 million, according to Royal LePage. Prices in Toronto are forecast to climb 14.9 percent to C$718,000. The only major city set to cool is Edmonton, sliding 1 percent to C$376,700.