Canadian Real Estate Prices Jump Another $29,000 And Have Never Grown Faster

Canadian real estate prices are moving at a record-shattering speed these days. Canadian Real Estate Association (CREA) data shows home prices hit a new record in January. Though they didn’t just hit a record for price, but the growth rate as well. Despite warnings of higher rates and a regulator calling the market a bubble last month, buyers weren’t deterred. They dug their heels in, and pursued the most aggressive price growth in Canadian history.

Canadian Real Estate Prices Jumped $29,400 In January

Canada’s typical home price is soaring like never before. The composite benchmark price hit $825,800 in January, up 3.69% ($29,400) from a month earlier. Compared to the same month last year, prices are 28.01% ($180,700) higher. Once again, this is for a typical home across Canada — not one or two tight markets. Almost anything with four walls and a roof is making half the median worker’s annual wage, in just a month.

Canadian Residential Real Estate Benchmark Price

The composite benchmark price of a home across Canada, in Canadian dollars.

Source: CREA; Better Dwelling.

Canadian Home Prices Have Never Before Grown This Fast

Annual home price growth doesn’t just seem high, it’s never grown this fast before. Growth reached a new record at 28.01% in January, far exceeding the previous peak of 17.75% in April 2017. Adding $180,700 in one year is double the gross annual median income across the country. Vancouver’s frothy growth is now the rule for the whole Canadian market, not an exception.

Canadian Residential Real Estate Benchmark Price Growth

The 3-month (annualized) and 12-month percent growth of the composite benchmark price of a home across Canada.

Source: CREA; Better Dwelling.

Home Price Growth Has Been Accelerating

Short-term growth indicates things aren’t slowing down either, they’re accelerating. The 3-month annualized rate of growth reached 33.49% in January. This trend has shown consistent acceleration since abruptly reversing in September 2021.

Generally speaking, this trend indicates there’s a little more steam for growth left. At such high levels though, one would think growth is reaching a peak soon. However, people probably felt that way a year ago, as the previous record was approached.

Canadian home prices are growing at the fastest rate ever and showing few signs of slowing down. Annual growth reached a new record high, and there are signs it’s accelerating. Warnings of higher rates or regulators warning of a bubble didn’t even put a dent in the rate of growth. All buyers see is a lack of inventory, and their last opportunity to buy a home. Ironically, the lack of inventory is expected to be resolved when home price growth slows.

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  • Richard Allen 6 months ago

    I just wanted to say that this is not anywhere near universal, even percentage wise. Alberta is doing little, Toronto is stupid.

  • Jambok 6 months ago

    Any real estate price increase while on the cusp of new rate hike cycle doesn’t matter. It’s not where prices are now but where they will be when rates go up another 1 to 2% is what I am looking forward to seeing. If i had to venture a guess prices will be a lot lower but then again we will have the actual results in less a year. And the whole Tiff Maklem and Trudeau trying trying to slow rate hike pace isn’t going to work. The Federal reserve is now talking about a 2% hike before end of year to control their inflation. They can do that as their debt isn’t as high as ours and they also have the Universal world currency. If BOC doesn’t go anywhere near tandem with the Fed the loonie will take a big hit and we will be seeing 15 % inflation. But i think BOC will take higher inflation before they pop the bubble but sooner or later public opinion will force their hand to target inflation. So BOC is running out options to kick the can down the road like they have always done. Basically anybody leveraging themselves now to buy a property will not be in a great financial position in the near future.

  • alex 6 months ago

    This forum used to be filled with plenty of commentary surrounding this sort of news – I think it’s safe to say that after seeing the current state of our parliament, people are done with conjecture and are essentially just waiting for things to go belly up as they inevitably will at this point.

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