Ontario Construction News staff writer
The head of Canadian Imperial Bank of Commerce says governments should dramatically increase the country’s housing supply, as sales and prices soar to record levels in cities including Toronto and Vancouver.
CIBC chief executive Victor Dodig says that heated housing conditions could be alleviated if there was more urban and suburban density along with transit infrastructure and policies freeing up non-environmentally protected lands in newer towns.
Despite the COVID-19 pandemic, 2021 began with bidding wars and housing bubble talk as average prices surpassed $1 million in Toronto and Vancouver.
A new analysis from real estate brokerage Properly shows that homes in suburban areas of the GTA during the six-month period leading up to the health crisis have increased far beyond their those in Toronto.
While prices have increased all over Southern Ontario thanks to jump in demand amid supply shortages — areas around the GTA have skyrocketed.
The greatest jump is in Oshawa, where home values rose 48 per cent in just over a year. Georgina and Brock both also saw surges, with an average increase of 46 per cent in each market.
“Meanwhile, regions in closer proximity to Toronto, such as Vaughan (21%), Markham (22%), and Richmond Hill (22%), have seen weaker — but still impressive — appreciation,” notes the Properly report.
CIBC’s current forecasts predict GDP growth, the return of household spending and recovery for businesses hit hard by the crisis.
However, Dodig warns that the country must be mindful of challenges that could arise during the recovery because “it’s not enough to just bounce back.”