Residential property prices in Canada rose significantly in the year to September 2013, largely thanks to booming housing markets in Vancouver, Calgary and Toronto.
According to the latest Canadian Real Estate Association (CREA) figures, the national average house price of houses sold in Canada during September was CDN$385,906 – 8.8 per cent higher than it was a year ago.
However, if Greater Toronto, Greater Vancouver and Calgary were removed from the national average price calculation, the year-over-year increase would be 4.3 per cent. Prices in those three cities rose by 6 per cent, 8.8 per cent and 8.2 per cent respectively in this 12-month period.
The CREA said that the year-over-year average price gain reflects the decline in sales activity recorded last year in some of Canada’s larger and more expensive markets, which caused the national average price to drop.
Indeed, the number of houses sold nationwide in September rose by 18.2 per cent when compared with September 2012, although the CREA again pointed out that this is because last year’s figures were unusually weak.
“Year-over-year increases in the sales over the past couple of months highlights how activity softened across much of the country following the introduction of tighter mortgage rules last summer,’” said Gregory Klump, CREA’s chief economist.
Some 340,980 homes have traded hands across Canada so far this year. That stands 1.8 per cent below levels recorded in the first three quarters of 2012 – before the market slowed dramatically.
Article published 16th October 2013