8/15/2016, 4:18 PM (Source: TeleTrader)
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Canada's property market overheated

Housing market in two major cities in Canada is close to a boiling point; activity in sales and movements in prices were up in July and early August. In the nation's financial capital, Toronto, there is a lack of homes for sale.

The Toronto Real Estate Board recently said that a "troubling trend" arose: there are not enough detached houses offered for sale. Government of Ontario has encouraged building condominiums, while most of buyers want to purchase a single house, according to Frank Clayton from Ryerson University's Centre for Urban Research and Land Development. Millennials, or those born after 1980, are increasingly willing to buy a house, while majority of them still buy condos in high-rise buildings.

Low-rise houses took up 66% of the all purchases, compared to condos which made up 34% of all sales in the Greater Toronto Area last year. Prices of detached resale home prices rose 12% in the last 12 months, while condos are priced up 5%.

Soaring prices in Vancouver, British Columbia, prevent prospective buyers from purchasing. Many of them are desperately trying to keep their current rented apartment, with city's laws protecting them from landlord's wish to rise price each year. Current rental price for a single bedroom apartment rose to CA$1,100 from CA$900 in the last two years.

In Toronto, the S&P/TSX Composite added 0.18% to 14,774 points at 4:00 pm. CET.

Baha Breaking News (BBN) / ZR