Canadian Real Estate Prices Grow At Fastest Pace Since 2017, But Condos Slow Further

Canadian real estate prices are soaring, with gains accelerating into the winter. Canadian Real Estate Association (CREA) data shows a big monthly jump for home prices in November. Prices are rising almost exclusively in the detached home segment. Condo apartment values have now rolled back to pre-pandemic prices. 

Canadian Real Estate Prices Grow At The Fastest Rate Since 2017 

Canadian real estate prices are ripping higher at a very rapid pace. CREA’s aggregate benchmark price reached $646,700 in November, up 0.58% from the month before. This represents an increase of 11.33% from the same month last year. Both the monthly and annual rate of growth are huge. The latter has been accelerating since May, and is now at the highest rate of growth since 2017. What’s interesting is this isn’t a cross segment trend – it’s due exclusively to the rise in detached house prices. 

Canadian Real Estate Prices

The national benchmark price for a typical home, single-family, and condo apartment.

Source: CREA, Better Dwelling.

Detached Home Prices Increased By Over $8,000 Last Month

Canadian detached house prices made a monster monthly leap. The detached benchmark across Canada reached $709,700 in November, up 1.18% from the month before. Prices are now 14.06% higher than the same month last year. The monthly increase works out to $8,300, or about 10% of the median household gross income. It’s worth remembering this isn’t just expensive cities like Toronto and Vancouver. It’s a national index. That’s not quite the end of the story though. 

Canadian Real Estate Price Change

The 12-month percent change in the national benchmark price for a typical home, single-family, and condo apartment.

Source: CREA, Better Dwelling.

Condo Prices Dropped, And Are Back To Pre-Pandemic Levels

Detached home prices are soaring, but condo apartments made an even sharper move lower. The benchmark price of a condo apartment reached $471,100 in November, down 1.42% from the month before. Prices are now up just 3.84% compared to the same month last year. After shedding about $6,800 in value over the month, condo apartments are now back to February values.  

The trend of high detached prices and lower condo apartment prices seems a little odd at first. After all, low interest rates should drive spending of all segments, right? This is due to price gains being primarily driven by suburban markets and smaller cities. Cities like Toronto and Vancouver, traditional trend leaders, are seeing about half the aggregate price growth. This also gives a little more context to detached prices soaring, since there’s fewer condo apartments located outside of major cities. 

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