A recent study conducted by analytics firm CoreLogic shows that prices of Toronto houses for sale have been growing faster than in any other major city in the world during the past year.
The top three cities in the world in terms of price growth are Toronto, Sydney and Vancouver. Median prices in Toronto have spiked 19% year-over-year in March 2017, overtaking Sydney’s 18.4% and Vancouver’s 14%.
Median prices are less prone to wild fluctuations than averages, which is why the Toronto price jump reported in the study conducted exclusively for the Daily Telegraph seems smaller than the 27.7% average price increase reported in the Canadian press in February 2017.
However, Toronto is only in the lead by 0.6%, and the Financial Accountability Office of Ontario is predicting “slightly lower prices” in housing over the next three years.
If new regulations and taxes meant to cool the Ontario real estate market are passed by the provincial government, a 10% drop in prices can be expected by 2020, with a 20% worst case scenario.
Other cities with dizzying price hikes last year are:
Melbourne, Australia – 13.4%
New York City, USA – 11.5%
Auckland, New Zealand – 11%
Hong Kong, China – 10.8%
Tokyo – 9.3%