Canadian real estate has divided into two distinct markets, once again. Numbers from the Canadian Real Estate Association (CREA) show that half of markets posted price gains in October, and half showed price declines. Even with some showing monthly declines, only two major markets showed negative price growth over the past year.
Major Market Index Is Flat
The price of a benchmark (a.k.a. typical) home across Canada’s major markets is seeing price growth start to stall. CREA reported a composite benchmark price of $601,000 in October, virtually flat from the month before. This represents a 9.71% increase compared to the same month last year. While prices are up on an annual basis, they’re down 2.54% from the peak obtained in May 2017.
The trend to note here is the rapid tapering of annual price growth. The 9.71% growth is the lowest 12 month growth observed since March 2016. That’s somewhat expected after a the 19.7% peak growth obtained in April 2017. However, it does increase the odds that this trend will hit negative growth, rolling back some of the previous gains.
BC Is Home To The Three Most Expensive Cities
The most expensive regions are all in BC, now that Ontario prices have rolled back. Greater Vancouver takes the top spot with a typical home selling for $1,042,300. Lower Mainland BC is in second, with the typical home priced $941,700. Fraser Valley comes in third, with a typical home now $751,400.
There are still major markets in the country where you can find affordable homes. The lowest priced homes were seen in Moncton, where the typical home cost $175,300 in October. Regina is the second lowest, with the typical home coming in at 289,000. Third from the bottom of the list is Saskatoon, where the typical home cost $299,900.
Fraser Valley Saw The Largest Monthly Price Growth
Out of the 14 major markets, half saw prices rise last month, with BC taking the top three spots. Fraser Valley saw the largest increase, with prices jumping 0.72% from the month before. Lower Mainland came in second, with a monthly price increase of 0.57%. Greater Vancouver came in third, with prices 0.48% higher than the month before.
The other half of the 14 major markets saw prices decline, with Southern Ontario being heavily represented. Guelph saw the largest monthly decline, with prices dropping 0.91% from the month before. Regina is in second, with a monthly decline of 0.82%. Oakville-Milton came in third, with prices dropping 0.73% from the month before. In case you’re wondering where Toronto is, it came in fourth. Prices in the city declined by 0.4% in October.
BC Has The Largest Annual Gains
The largest annual gains for home prices in the country were all in BC. Vancouver Island saw the largest 12 month jump, with prices 18.91% higher. Fraser Valley is in second, with prices 17.35% higher than last year. Victoria came in third, with prices 14.29% higher than the same month last year.
The biggest declines were all in in the Canadian Prairies. Saskatoon is seeing a decline of 4.05% from last year. In second, Regina’s prices are down 1.65%. Third is Calgary, where prices are just a little higher, having increased 0.25% from last year.
The Canadian real estate market is cooling down, but only two markets are showing negative price growth. Southern Ontario is definitely seeing much of their gains made over the past year roll back, and there’s few signs that will end soon. BC however, just keeps chugging along.
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The only reason is that potential buyers have to use last occasion to buy property before new mortgage rules taking effect on Jan 1st. 2018.
The condo flipping in Yaletown is getting insane, my parents home in the suburbs went up about a million in just over a year which is just nuts. Realtors are also selling luxury vacations for foreign buyers which is crazy https://luxurybc.ca/tour/
Hey Better Dwelling folks – the Lower Mainland is Greater Vancouver and Fraser Valley combined, so doesn’t count as an additional region. Just FYI 🙂 Toronto is third most expensive.
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