Canadian real estate sales are back to booming, and they’re pushing prices higher. Canadian Real Estate Association (CREA) data shows the price of a home in Canada hit a new high in October. Price growth was much stronger in Ontario and Quebec, with Western Canada still dragging.
Canadian Real Estate Prices
The industry’s aggregate price index is still climbing across Canada. The benchmark price is $633,600 for October, up 0.64% from the month before. This represents a 1.77% increase compared to the same month last year. That puts the aggregate benchmark price at a new all-time high, although growth is slower than last year.
Canadian Real Estate Benchmark Change
The 12 month price in change of a typical home across Canada.
Source: CREA, Better Dwelling.
The benchmark might be at a new high, but growth has tapered to a very small level. The 1.77% 12-month increase observed in October, is 25.63% smaller than the one seen a year before. The gain itself is a smaller than inflation is expected to come in at, which isn’t all that impressive. That said, there are very large regional variances in price movements once again.
Canadian Real Estate Benchmark Price
The price of a typical home in Canada’s largest real estate markets.
Source: CREA, Better Dwelling.
The Biggest Growth Is In The Quebec City–Windsor Corridor
The markets with the biggest growth are all in the Quebec City-Windsor corridor. Ottawa printed the biggest gains with a benchmark of $436,300 in October, up 10.25% from last year. In second was Montreal with a benchmark of $374,400, up 7.53% from last year. Niagara came in third at $423,600, up 7.24% from last year. Yes, these are massive numbers. However, they’re still under the national baseline, so it’s not entirely unexpected.
Canadian Real Estate Price Change – 1 Year
The 1 year percent change in the price of a typical home, in Canada’s largest markets.
Source: CREA, Better Dwelling.
Western Canada Is Still In The Dump, But B.C. Losses Are Slowing
Western Canadian real estate markets are underperforming, and printing losses. Regina’s benchmark made the biggest tumble to $257,900 in October, down 7.12% from last year. Vancouver followed with a benchmark of $994,900, down 6.44% from last year. Fraser Valley was in third with a benchmark of $821,300, down 4.16% from last year. The most interesting note there is B.C. real estate no longer leads lower, and losses are shrinking.
Canadian Real Estate Price Change From Peak
The percent change from peak pricing for a typical home in Canada’s largest markets.
Source: CREA, Better Dwelling.
Prices across Canada are at a new all-time high, but there’s a few things to watch out for. The index’s growth is smaller than last year, showing things are still decelerating. Most growth is in markets that underperformed the national average. On a bright note, Western Canada is starting to see some improvements… just not a lot.
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If the government don’t control this bubble and let the prices come back down to affordable levels I’m leaving. Taking 30 years worth of taxes and contributions with me. I’m not going to let my family suffer here where only boomers are benefiting.
See ya. I mean the government has put a 500k floor in the market with the new downpayment program. Also with bonds trading at this level were going to see ultra cheap fixed rate mortgages for a long time.
Dead cat bounce