Canada

Canadian Real Estate Prices Are Up 19%, Average Price Hits $734,000 In June

Canadian real estate prices are rising at a breakneck speed — even with slowing sales. The RPS House Price Index (HPI) made a huge leap in June for almost all markets. It didn’t matter where, even small towns have begun to outperform big cities. Let’s dive into the frothy month Canada just had.

Canadian Home Prices Are Rising Faster In Small Towns

Canadian home prices have made a sharp climb over the past year, and not just in “hot” markets. According to the National 3500, the index home price reached $733,950 in June. Compared to a year ago, prices are now 19.4% higher. This index measures 3,500 cities and towns across Canada. It provides one of the most comprehensive looks at national price growth. 

The firm also produces the National 13, which tracks home prices in Canada’s 13 largest cities. This index shows an index price of $803,261 for June, up 17.5% from the same month last year. Prices are higher in big cities, but the rate of growth is stronger in smaller regions. It’s called price flattening, and means the gap between cities and rural regions is closing.

RPS House Price Index June 2021

The index price of a home in Canada’s largest markets, as well as two national composites. 

Source: RPS. 

Both aggregate national index measures accelerated in growth from a month before. 

Ottawa, Hamilton, and Halifax Are The Best Performing Big Markets

The real estate markets with the largest price growth were Ottawa, Hamilton, and Halifax — in that order. Ottawa’s index price jumped to $656,680 in June, up 25.2% from the same month last year. Hamilton’s index price reached $773,460, up 25.2% over the same period. Halifax came in third with an index price of $445,370, up 24.9% from a year ago. All three markets have seen price growth accelerate from the month before.

RPS House Price Index Change June 2021

Source: RPS. 

The three markets were the only in the National 13 to see growth rates above 20% in June. Since the National 3500 is nearly at 20% annual growth, it’s safe to assume small markets grew much faster.

Toronto Real Estate Prices Are Up 19%

Toronto real estate is seeing large growth, but underperforming smaller markets. The aggregate index price reached $1,125,670 in June, up 18.7% compared to a year ago. It just outperformed the National 13 average, but came in lower than the National 3500. Higher than typical growth for a big city, but lower growth than smaller regions. But that’s not really breaking news at this point.

Vancouver Real Estate Prices Are Up 18%

The country’s most expensive real estate market is seeing fast growth. The aggregate index price reached $1,270,350 in June, up 17.5% from a year ago. The annual rate of growth is tied with the National 13, and underperformed the National 3500. It performed in line with other big cities, but small towns outperformed.

Montreal Real Estate Prices Are Up 18%

Montreal real estate prices are cheaper than the national average, but may not be much longer. The index price reached $560,680 in June, up 17.7% from the year before. Growth is faster than the National 13, but lower than the National 3500. It’s moving fast for a big city, but not as fast as some small towns. Though it might cost the same to buy, considering how expensive small towns are now.

Canada is seeing home prices rise almost everywhere, and not by a little either. National growth is well into the double digits, and nearly at 20% by one measure. When prices climb everywhere, it’s usually due to an overly easy credit supply. That or all 3,500 markets across the country are all of a sudden the next Manhattan.

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15 Comments

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  • Kevin L 2 months ago

    Three quarters of a million to live in Canada, for the opportunity to earn half my wage in the US. If you have good work place health insurance down here, there’s no point in staying. Best decision I’ve ever made was defecting from Van.

    • g 2 months ago

      where did you move? what paperwork is needed to for a canadian citizen to move to us? thanks!

      • John Thunder 2 months ago

        If you don’t have a degree in a wanted profession (i.e. engineering, medical, MBA, etc) than you have zero chance. Otherwise you either TN visa which is only temporary and must continually be renewed. It is actually very hard as a Canadian to get an intent to stay visa that leads to a green card because employers know that you can just TN and they can use the H1Bs on other foreign nationals. Basically if you didn’t know this than you likely have zero chance of moving to the US.

    • Expat 2 months ago

      This is why I’ve given up on Canada too. I’m a 2nd generation Canadian with roots from Poland. Right before the pandemic I bought a brand new apartment in the Old Town of a vibrant city with cash, on top of that my work is flexible and because of the favourable exchange rate I plan to work 2 months a year and live the other 10 stress free and traveling. I’m fortunate cause I have another place that feels like home to me and even luckier because it’s cheap and offers the same western culture I’m use to here – just in a different language. Beyond excited to finally leave tomorrow.

  • Whiskey Foxtrot 2 months ago

    Imagine paying $800k to live in Hamilton. LOL.

  • Joyce Kent 2 months ago

    Seriously, a house is suppose to cost 3x your household wage. Anyone, anywhere in Canada now needs a household income of $200k to buy? The government is insane.

    • Sam 2 months ago

      I think I read one article that talked about the amazing amounts of household saving s that are pent up and ready to splurge out a strong recovery…and then the next article was about the frightening record amount of household debt Canadians are in.

      I give up.

  • Expat 2 months ago

    This is why I’ve given up on Canada. I’m a 2nd generation Canadian with roots from Poland. Right before the pandemic I bought a brand new apartment in the Old Town of a vibrant city with cash, on top of that my work is flexible and because of the favourable exchange rate I plan to work 2 months a year and live the other 10 stress free and traveling. I’m fortunate cause I have another place that feels like home to me and even luckier because it’s cheap and offers the same western culture I’m use to here just in a different language. Waited 16 months for this, beyond excited to finally leave tomorrow.

    • D 2 months ago

      Are you a polish citizen? Did they give you right of return like what they do with Jews if they want to live in Israel?

  • Expat 2 months ago

    This is why I’ve given up on Canada. I’m a 2nd generation Canadian with roots from Poland. Right before the pandemic I bought a brand new apartment in the Old Town of a vibrant city with cash, on top of that my work is flexible and because of the favourable exchange rate I plan to work 2 months a year and live the other 10 stress free and traveling. I’m fortunate cause I have another place that feels like home to me and even luckier because it’s cheap and offers the same western culture I’m use to here – just in Polish. Beyond excited to finally leave tomorrow.

  • D 2 months ago

    When does the buck stop? $10 million for a crack shack in Niagara?

  • Ron 2 months ago

    I know many people from Eastern Europe cashing in on there houses and going back home , where they can fix their own places or buy a house for a fraction of the ones here. Why stay in the rat race here , crowded overpopulated citys , portables in schools , wait for health appointments , bidding wars, high taxes , trend for tiny houses and van living ….. Canada was a good place to be 10 -20 years ago.

  • Andrew 2 months ago

    This is blatantly misleading, only quoting YoY growth averages and from ‘indices’ not entire markets. This is cherry-picked data designed to stoke the mentality that real-estate is continuing to sky rocket. The financial post just released an article based on CREA (Canadian Real Estate Association) data showing June was slowing compared to May.

    Better Dwelling clearly has a bias, people please read more than one source.

    https://financialpost.com/real-estate/canada-home-sales-average-price-fall-on-month-in-june?fbclid=IwAR1vYXMrfntTURkXSpLm2dYdP4IJnJho6GChfVxaeo3d6wwC-DXL-MlonzA

    • RW 2 months ago

      lol. STFU, dummy. You’re looking at two different reports. Read their take on the same one.

      The only thing worse than someone who doesn’t understand what they’re talking about is someone that’s not smart enough to understand they have no clue.

  • bear bear 2 months ago

    19% YoY growth is LOWER growth than March, April and May..

    Also, rising prices with slowing sales is usually a harbinger of a bear market

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