Canada’s real estate market has been in recovery mode for a while now. With the exception of Western Canada, growth has been steady, the climb has been slow-moving – which is not a bad thing. This week the Teranet – National Bank of Canada House Price Index showed that real estate prices have been on the increase.
The C11 – an aggregate index of Canada’s largest real estate markets - pushed 0.09 per cent higher in September, which represented year-over-year gains of 0.66 per cent. What’s dragging the growth? Western Canada’s downturn in pricing, which tracked lower than inflation rates. As CTV news reported earlier this summer, the Canadian Real Estate Association (CREA) saw house prices generally increase across the provinces.
This was after a challenging few months after the stress test initially kicked off in 2018, but for Western Canada the drop which in some cases, such as Edmonton’s, was due to unemployment levels. However, lower prices also came from B.C. real estate markets like Vancouver and Victoria. Other Western Canadian markets like Edmonton and Calgary were also facing a downturn in pricing.
READ: Detached Housing Sales Keeping Toronto’s Real Estate Market Hot
Conversely, and perhaps unsurprisingly, Toronto real estate prices were up. In fact, CTV reported that some homes and condos in Toronto actually doubled in price within a 5 year timeframe.
As far as the Toronto index, it reached a new all-time high, largely led by the condo market and it come back in the 905. The index increased 0.14% in September, bringing the year-over-year movement 4.03% higher. The monthly increase was below average for the market, but still pushed the index to a new all-time high.
Meanwhile, Vancouver real estate seems stuck in its own rut, falling behind the Canadian index. The Daily Hive reported that Metro Vancouver home prices hadn’t risen in over a year. The Vancouver index dropped another 0.49% in September, bringing it 7.10% lower than the same month last year. Prices are down 7.42% from the peak reached in July 2018.
READ: Canadian Housing Sales Rise For Sixth Consecutive Month: CREA
“We’re seeing more balanced housing market conditions over the last three months compared to what we saw at this time last year,” Ashley Smith, the Real Estate Board of Greater Vancouver (REBGV) president said. “Home buyers are more willing to make offers today, particularly in the townhome and apartment markets.”
Overall, the Canadian market is experiencing a slow and steady tredge uphill, with Eastern Canada showing the biggest boost.
Home sales activity and prices are improving after having weakened significantly in a number of housing markets,” Gregory Klump, chief economist at the Ottawa-based realtor group, said in a statement to BNN Bloomberg.
“How long the current rebound continues depends on economic growth, which is being subdued by trade and business investment uncertainties.”
