Canadian real estate sales may be slowing, but home prices are still rising at a mind-blowing rate. Canadian Real Estate Association (CREA) data shows the benchmark, or typical home, price hit a record in April. There was a little more inventory last month, but that didn’t do much to slow price growth. A typical home across the country jumped by $18,000 over just the month.
Canadian Real Estate Prices Jump $18,000
Canadian real estate prices are soaring, with the typical (benchmark) home reaching a new all-time high. The composite benchmark reached $731,600 in April, up 2.54% ($18,100) from a month before. Compared to the same month last year, prices are now 23.12% ($137,400) higher. Homeownership has a steep entry point across the country now, not just in big cities.
The monthly trend is cooling, while the annual trend is accelerating. Home prices made a monthly increase about two-thirds the size of the month before. Still, the annual increase made a new record high, surpassing the history of the benchmark. There’s some base effect, but don’t let that discount the recent acceleration of home prices. The recent month-over-month gains have been huge by themselves.
Canadian Composite Benchmark ChangeThe 12-month change of a typical home price across Canada, in Canadian dollars. Source: CREA; Better Dwelling.
Canadian Real Estate Markets See A Monthly Climb of Up To $43,000 In April
The largest monthly dollar increases weren’t in Toronto or Vancouver but in the region’s far suburbs. Southern Georgian Bay reached a benchmark price of $635,600 in April, up 7.47% ($43,100) from a month before. It was the biggest gain in the country. Fraser Valley followed with a benchmark price hitting $1,020,700, up 4.03% ($39,500) over the same period. Kawartha Lakes came in third at $591,200, up 6.83% ($37,800) from a month before. Each one of these markets saw a monthly price increase nearly the size of the annual after-tax income of a median worker.
Canadian Monthly Home Price ChangeThe monthly change in home prices for April 2021. Source: CREA; Better Dwelling.
Home Prices Increased By Up To $245,000 Over The Past Year
The largest annual dollar increases were located in cities surrounding Greater Toronto. Oakville printed the biggest gain with a benchmark hitting $1,342,300 in April, up 22.37% ($245,400) compared to the same month a year before. Hamilton was in second with a benchmark of $866,900, up 32.94% ($214,800) over the same period. Kitchener-Waterloo came in third $742,800, rising 40.42% ($213,800) from last year. The next 13 biggest annual gains are also seen in Southern Ontario real estate markets.
Canadian Annual Home Price ChangeThe annual change in home prices for April 2021. Source: CREA; Better Dwelling.
Greater Toronto Real Estate Prices Are Soaring, But Underperforming
Home prices in Greater Toronto are rising incredibly fast, but in this environment, it isn’t even close to the top gainer. The benchmark home in the region increased to $1,025,200 in April, up 1.75% ($17,600) from the month before. Compared to a year before, prices are 17.83% ($155,100) higher. Even with those incredibly large numbers, the monthly dollar gain ranked 23rd, and the annual 21st.
Vancouver Real Estate Prices Increased $29,000 Last Month
Greater Vancouver real estate also experienced monster dollar gains, that didn’t register at the top. The benchmark price hit $1,152,600 in April, up 2.61% ($29,300) from a month before. Compared to a year before, prices are 12.03% ($123,800) higher. This was the 8th largest dollar gain for both the monthly and annual increase. Prices jumping nearly $30,000 in a month isn’t enough to reach the top of the chart.
Southern Ontario typically gets all of the attention, but home prices are growing everywhere. Even regions where the population is shrinking have seen home price growth. Weird things happen when the government gives you cheap debt and says they won’t let prices drop.
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