Canadian Cities Lead The Pack For North American Home Price Hikes
Canadian home prices have increased pretty drastically in the last five years.
According to a recent report from Point2 Homes, six of the top 10 North American cities with the biggest home price changes are in Canada.
The real estate research site based their report on home prices in Canadian, American and Mexican metropolitan housing markets between December 2013 and December 2018. The data did not take into account inflation.
Of the six cities, Surrey, B.C., ranked second with a five-year change of 88 per cent. Vancouver was the second Canadian city on the list ranking fourth with a 68 per cent change.
In fifth, sixth and seventh were Toronto suburbs Brampton, Hamilton and Mississauga. Toronto came in ninth place with a 59 per cent price increase in the last five years.
“With more and more people opting for a connected, urban lifestyle, and with the younger generation’s desire to reduce commute time, demand for urban housing is skyrocketing,” said Andra Hopulele, Point2 Homes author. “In markets like … Vancouver, which already [boasts] stratospheric home prices, even the smallest changes impact homebuyers’ pockets in a very big way.”
According to the report, the average price of a Toronto home in 2013 was $532,900. In 2018, the average cost of a Toronto home reached $845,000.
The North American city with the biggest price difference was Detroit, Michigan with a 97 per cent price increase. Over five years, the average cost of a home in Detroit rose by $30,143 USD.
It wasn’t all bad news for Canadian cities though, according to the report, Calgary and Edmonton, Alta., were the only two cities to show a decrease in price over five years. In both cities, home prices dropped by more than $4,500 between 2013 and 2018.