Canadian real estate prices show no sign of slowing down, even going into the winter. According to the Canadian Real Estate Association (CREA), prices jumped by tens of thousands in November. Not in one or two extraordinary markets either, but right across the country. Home prices have increased well over six figures since last year. Values are rising by more than the annual income of a typical family that lives in a typical home.
Canadian Real Estate Prices Increased Over $20,000 Last Month
Canadian home prices are surging higher right across the country. A composite benchmark (a.k.a. typical) home reached $790,600 in November, up 2.7% ($20,785) from a month before. Compared to a year before, prices are now up a whopping 25.3% ($159,634). It was a record for both price and annual growth last month. Keep in mind that this is a typical home price across the country. Many individual markets are growing even faster.
Only One Market Didn’t See Home Prices Rise
Some of the country’s most expensive markets made the biggest moves last month. Toronto real estate climbed $43,520 in November, rivaling the median annual income in the city. Oakville (+$43,520) and Fraser Valley (+$39,342) followed in second and third, respectively. All three markets have 7-figure benchmark home prices at this point.
Canadian Real Estate Benchmark Change
The 1-month change for composite benchmark home prices across Canada, in dollars.
Source: CREA; Better Dwelling.
Only one prominent real estate market in the whole country saw its benchmark price fall. Composite home prices in Edmonton fell by $2,734 in November. That was it for monthly increases.
Canada’s Top 3 Real Estate Markets Saw Annual Price Growth Over $250k
Markets that made the most significant monthly move also topped the charts for 12-month growth. Oakville (+$398,754), Fraser Valley (+$270,537), and Toronto (+$262,200) saw the largest annual climb in dollars. These three cities saw prices rise by over a quarter-million dollars in just one year.
Canadian Real Estate Prices November 2021
The benchmark price of a home in major Canadian cities, with the 12-month change in dollar value highlighted.
Source: CREA; Better Dwelling.
No major Canadian real estate market saw composite home prices fall annually.
Canadian home prices have seen significant growth in almost every market. Synchronized growth is often a sign of easy policy not having sufficient areas to land. The other possibility, of course, is that all of Canada will be the next Manhattan.
I remember a few years back when City Politicians and Realtors in my little West Coast Burg started referring to our City as “The Next Manhattan.” Then without a hint of irony or Historical Context the Mayor referred to a local waterfront condo development as the “Manhattan Project.”
That Project now extends from “Sea to shining Sea.”
This kind of growth is unsustainable. I expect price growth to be much more modest, in the neighbourhood of 4K to 5K a month in 2022.