Canadian real estate saw prices surge across the country, but not in all segments. Canadian Real Estate Association (CREA) data show the national index saw price growth speed up in October. A breakdown of the index reveals a different picture though. Since the beginning of the pandemic, single-family home prices experienced a price surge. Meanwhile, condo apartments have seen markets rapidly cool, falling from all-time highs.
Canadian Real Estate Prices Rise Almost 1% In October
CREA’s aggregate index is making large gains across the country. The price of a typical home reached $643,000 in October, up 0.78% from the month before. This represents a 10.86% increase compared to the same month last year. Single-family homes are responsible for all of the monthly gains, as condo apartments continue to slide lower.
Canadian Real Estate Prices
The national benchmark price for a typical home, single-family, and condo apartment.Source: CREA, Better Dwelling.
Single-Family Homes Increased More Than 1%
Single-family homes, such as detached units, have seen price growth accelerate. CREA’s benchmark price reached $701,400 in October, up 1.12% from the previous month. Compared to the same month last year, this is 12.87% higher. The rate of price growth really started to accelerate at the beginning of the pandemic.
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.
Canadian Condo Apartment Prices Fell 0.21%
Condo apartments on the other hand, are seeing a lot less interest these days. CREA’s benchmark price for condos slipped to $477,900 in October, down 0.21% from the previous month. Compared to the same time last year, this represents a 5.68% increase. Prices have mostly been sliding lower, after peaking at the start of the pandemic.
Home prices are rising at the national level, however not all segments are created equal. The trend of higher prices, and accelerated price growth is due entirely to detached homes in the index weight. Condo apartments on the other hand, have been slipping since the pandemic. Both segments are expected to see a change of direction once things go back to normal. However, some analysts feel the brunt of the declines will be felt in condo apartments.
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Canada is shooting for high rise density, but the carrying costs are getting so high it’s just rent on a regular house. Wouldn’t wish a condo on my worst enemies.
Condo insurance getting insane. Get out while you can.
Spoke to a big agent in Toronto that said there’s now an issue where people need to sell their condo, after buying a detached and can’t for as much as they expected. Always sell first before moving, I guess the lesson is.
How else will agents lock in two guaranteed sales, if they don’t represent you on the buy first? *wink*
The Canadian real estate market is built like a house of cards. Now we are seeing the first signs of the foundation (condos) collapsing. Low immigration, no international students, domestic students living at home and completing online studies, plummeting rent revenue, increase in operation costs (condo insurance), phasing out of mortgage deferrals, phasing out of government benefits, high unemployment, newly constructed condo units hitting the market in 2021, high underemployment (reduced hours), stagnant wage growth and the desire for people to move out of city cores. This truly is the perfect storm that will send shockwaves across the Canadian Housing Market.
Exactly right. The majority of milennials however believe that the Federal Government will keep home prices from collapsing as they believe this is what the government should do.
The biggest mistake is believing any numbers from CREA and TREB while making your buying/selling secision.
They need to win an award for misleading the public! They do zero analysis, play with their numbers and then pump that garbage to the MSM.
TRREB want people to be ignorant, be at the mercy of an agents who do nothing now & just fuel the pric by creating false supply-demand shortage…
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