Canadian real estate prices aren’t slowing down from the threat of higher rates. In fact, Canadian Real Estate Association (CREA) data shows the opposite for January. Over just one month, real estate markets have seen a “typical” home rise up to six figures from a month before.
A Typical Home Across Canada Now Costs $825,000
Canadian real estate prices ripped higher last month right across the country. The aggregate of urban markets saw the price of a typical home reach $825,800 in January, up 3.7% ($29,400) from a month before. Compared to last year, prices are now 28.0% ($180,700) higher. More than half of CREA’s price indices show prices increased at least $20,000 over the past month. This isn’t just a few markets with high demand, but broad growth spreading across the country.
Canadian Residential Real Estate Prices
The composite benchmark price for a home, in Canadian dollars.
Source: CREA; Better Dwelling.
Canadian Real Estate Prices Jumped Up To $128k Last Month
The largest dollar gains for the month were in Southern Ontario markets. Oakville showed the largest gains, with prices rising $128,200 (8.5%) from a month before. A typical home in the region reached $1,645,000 in January. We had to double-check that one, since a typical home rising more than the annual household income in 31 days is odd.
Canadian Real Estate Price 1-Month Change
The 1-month change in the composite benchmark price for a home, in Canadian dollars.
Source: CREA; Better Dwelling.
The next two markets, Kitchener-Waterloo and Hamilton-Burlington, also made absurd gains as well. Kitchener’s typical home increased 8.6% ($73,200) in January, pushing the benchmark price to $924,900. Hamilton followed in third, with prices rising 5.9% ($59,300) in the month, with a typical home reaching $1,058,000. It’s worth noting that all three of these markets are distant suburbs of Greater Toronto.
Canadian Real Estate Increased Up To $465k Last Year
The largest annual dollar growth was seen surrounding Toronto and Vancouver. Oakville home prices (Oakville again!) are 39.5% ($465,500) higher in January when compared to a year ago. Fraser Valley followed with a typical home at $1,237,000, up 37.4% ($336,700) over the same period. Greater Toronto was in third, with the benchmark price hitting $1,259,900, up 33.3% ($314,700) in one year.
Most of the country is showing fast price growth, as loose policy meets low inventory. About 78% of CREA house price indices show prices increased by at least 20% from last year. With widely synchronized growth, one economist recently told institutional clients to consider: What’s more likely? That everywhere across Canada is suddenly out of inventory? Or has the “madness” of the crowd taken over?
Madness
The government said they would put a 2 year moratorium on foreign buyers in January. They haven’t done it. The majority of buyers right now are non- residents. They are trying to get in before they are shut out of Canada.
These non – residents also fall under the category of investors and own most of the vacant homes in Canada that amount to over 1.4 million homes.
Dirty money is also buying up Canada. Weare one of the only first world countries that does not have strict regulations to prevent money laundering.
Not last month, in the last year. STOP WITH MISLEADING CLICKBAIT HEADLINES. HAVE SOME INTEGRITY.
Nerds should learn to read. That’s LAST MONTH. Same market was $450k over the last year.
“clickbait” just means I don’t like it in Canada. Prices rise too fast? Clickbait. Too much salt in your food? Clickbait. Car has a flat tire? Clickbait.
Canadians have constructed their own reality where anything they don’t like is wrong. It’s going really well for them.
For those living in reality, this is the board’s actual numbers that confirm it was ONE MONTH of gains.
The industry has to pretend it isn’t real since in reality there’s no way to explain that kind of movement with “demand.”
Saw a listing on MLS last week which stated: great starter home (it is a tiny dump). Price tag:
1.7 million. Madness indeed. Our government will only start to protect Cdns. from foreign buyers and money laundering when the cost of real estate becomes a political liability. One might think that should have happened by now but it hasn’t. Could it be because the majority of people who actually vote already own homes?