Canada

Canadian Real Estate Markets Have Seen A “Typical” Home Increase Up To $400,000

Canadian real estate prices are soaring at the fastest pace ever, yet the national numbers downplay growth. Canadian Real Estate Association (CREA) data shows home prices continued to soar in December. Over just 31 days, a “typical” home added up to $40,000 in one market. Over the past year, prices have increased more than ten times that monthly surge.

A Typical Home Across Canada Increased $16,700 Last Month

Canadian home prices are rising at one of the fastest rates ever. The composite benchmark (a.k.a. a typical home) reached $798,200 in December, up 2.1% ($16,700) compared to a month before. The benchmark is now a whopping 26.6% ($167,500) higher than last year. Both are large gains, but this is the index — many markets outperform even that huge growth.

Canadian Commuter Cities Have Seen The Largest Monthly Gains

Commuter suburbs saw the largest monthly home price increase last month. Fraser Valley’s composite benchmark reached $1,184,400 in December, up 3.6% ($40,800) from the previous month. It was the largest monthly jump in any real estate market, rising almost half the area’s median household income. The board neighbors Greater Vancouver, and prices are now “flattening.” That last part means the gap between prices in the suburbs and city is shrinking.

Canadian Real Estate Prices Change 1 Month

The 1-month change in price for a composite benchmark home across Canada in December.

Source: CREA; Better Dwelling.

The second and third largest monthly gains were both seen in Southern Ontario. Oakville’s benchmark home price hit $1,516,800 in December, up 2.6% ($39,000) from a month before. Cambridge followed with the typical home reaching $884,600, up 4.2% ($36,000) over the same period. Both regions are within a one-hour commute of Toronto.

Canadian Real Estate Markets Have Seen Prices Increase Up To $400,000 In One Year

Commuter suburbs also took the top two spots for annual growth, with the city people commute to in third. The Oakville region has seen a typical home hit $1,516,800 in December, up 36.4% ($404,900) from a year before. Fraser Valley made this list as well, with prices rising 33.4% ($296,300) in one year. Greater Toronto’s typical home has also jumped to a benchmark price of $1,208,000, up 31.1% ($286,600) from a year before. Two pricey suburbs and one of the most expensive markets in the world. 

Canadian Real Estate Prices Change 12 Month

The 12-month change in price for a composite benchmark home across Canada in December.

Source: CREA; Better Dwelling.

Canadian real estate prices have seen strong growth, driven by low inventory and cheap debt. However, it’s a bit of a chicken and the egg situation, where it’s unclear if inventory fell first or followed. A ton of new homes have been recently delivered to the market, with a significant share to investors. 

Investors looking to liquidate would have to be very generous to do so with such high price growth. As BMO recently said, this only ends when the Bank of Canada wants it to end. Until then, expect soaring growth to persist, as well as tight inventory.

8 Comments

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  • V 4 months ago

    What is wrong with this Government and BOC. This is unaffordable and unbelievable that the people who run our country are letting this housing situation run unchecked.
    This is going to end in a bad way when rates go up. They should have already proceeded with higher rates.

  • Millennial 4 months ago

    The housing market in Canada is ridiculously expensive. There is an exceptional surge in TN Visa. A large number of people are considering to move to States.

  • Average Man 4 months ago

    I want to say this can’t be sustainable, but I’ve been saying that for five years and I’ve been wrong so wtf do I know?

    • Woolsock 4 months ago

      Could be worse. I’ve been saying it for 11 years, I’ve been wrong every time. It’ll be a horrible/glorious pyrrhic “I told you so” when it finally catches fire and crashes back down to the ground.

      “Oh the humanity!”

  • RWZM 4 months ago

    I’m unsubscribing from the e-mail updates. It started out optimistic but now it’s just like getting mainstream news in my inbox. Daily updates about how they’ve stolen my future and enslaved me, and there are no plans for anyone to do anything about it.

    Not the author’s fault of course.

    • Kate 4 months ago

      Thank you mate. I am feeling the same. It is so depressing.

    • Tearing me apart 4 months ago

      I concur, been following this site for 3 years, and it looked like we would finally see a change in direction back in Sept-Nov, but every stat and article produced since then has been more of the same doom and gloom again.

  • FlipG 4 months ago

    In any sane country those who are left out of Real Estate Eden would be protesting in the streets. The Working Middle Class who don’t already own property are being immolated.

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