Canadian home prices made a big jump in the second quarter, especially existing homes. Statistics Canada (Stat Can) data shows large advances in the Big Six real estate markets in Q2 2021. Both new and existing home prices increased very quickly. However, existing home prices grew at twice the rate of new homes.
Canada’s Big Six Real Estate Markets Have Seen Prices Grow Over 13%
The six largest real estate markets have seen home prices move at a breakneck speed. Aggregate home prices increased 6.7% in Q2 2021, and are now up 13.5% from a year before. For those that just missed it, almost half the price increase over the past year was just the last quarter. That means it’s not a base effect, but recent growth driving this trend.
New Home Prices Are Up Nearly 8%
Let’s break this number down, and look at new home prices in the big six markets. The index shows new home prices increased by 3.4% in Q2 2021, and are now up 7.8% from the year before. Once again, we can see the quarterly growth represents almost half of the advance over the past year. Additionally, we can also see annual growth is much smaller than the aggregate data.
Canadian Home Price Growth
The annual rate of growth for home prices in Canada’s Big Six real estate markets, in aggregate and by region.
Source: Stat Can; Better Dwelling.
Canadian Existing Home Prices Are Rising 2x The Rate Of New Homes
That can only mean one thing — existing home prices driving the growth trend. This segment saw prices rise 8.2% in Q2, and are up 16.0% from the year before. Quarterly growth is just over half the rate of annual growth, and more than twice that of new home prices. Annual growth is also around double the rate of existing homes.
The biggest takeaway from this data is how much faster existing home prices moved. New homes have seen construction costs soar, helping to push prices higher. Existing home prices still somehow managed to grow at twice the rate.
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