An early report Monday morning on all radio and news stations stated that two major Canadian cities have been ranked among the highest in the world for real estate. These two cities of course being Vancouver and Toronto. Vancouver placed a crazy 3rd while Toronto took 13th of the most unaffordable cities in the world. The rankings are based on cities that have a population over 1 million people.

These rankings are known as the 2017 Demographia International Housing Affordability Survey, and provide more information than just their standing. Beside each city is a number, that number represents the median home prices and how much higher they are than the median household income. For example, Vancouver's rating is 11.8. This means their home prices are 11.8 times higher than median household income. For those curious as to who took the gold and silver, that would be Hong Kong (18.1) and Australia (12.2).

The Star's article states that, housing markets are affordable when median prices are no more than three times higher than median household income.

Now, if you follow the real estate market, you will know that the market in Toronto is hot. Prices have climbed more than 22% and it all seems to be due to classic supply and demand. A shortage of homes while demand is high calls lower listing prices and bidding wars. Those with an abundance of cash, will go beyond what seems reasonable, like this house that sold for more than $1 million over asking in early January. Granted, it is located in an area that is desirable – especially with The Bridle Path steps away, but they also purposely priced it low to attract buyers and initiate a bidding war, a common tactic used by real estate agents.

Will the market improve or stay as it is, now that Trump has taken over as POTUS?

It is too early to tell. However, it has been noticed that the Canadian real estate market is getting attention from Americans, at an increasing rate since Donald Trump took over the Oval Office. This is not to say that Americans are seeking to leave the United States, they may just be attracted as they may view Canada as a more stable place than where they are at the moment.

They do find it attractive, but who is to say it will cause even more problems for us or make it better. There are too many factors that need to be looked at with regards to this. Trump's comments and actions can influence international markets – he caused the Canadian Dollar rise against the U.S. Dollar, just from his belief that the U.S. Dollar is too strong.

With so much that can influence our markets, some out of our control, we won't know anything until it happens. We'll just have to wait and see – Trump has just stepped into Office.

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