TORONTO — Home prices in Toronto skyrocketed 30.5 percent in March— a statistic that underscores just how hot housing markets in pockets of the country have been, RBC Economics noted today.
“Price gains in and around the Toronto region are at eye-watering levels, raising red flags about the stability of the market and prompting intervention by the Ontario government,” said Economist Laura Cooper. “Elsewhere, government intervention has contributed to take some pressure off the Vancouver market, although it still remains firmly in seller’s territory — a trend evident in close to 60 percent of markets across the country.
“Housing-related expenditures now account for a record share of the overall economy and have become a key growth contributor. But as the pace of housing activity looks increasingly unsustainable, how vulnerable is the Canadian economy to a housing downturn?” she asked.
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SOURCE: RBC Economics bulletin