The real estate prices in Canada have increased since November and they have shown great progress in the last year. The index gains were mostly from the markets in east Toronto which were on the rise after slowly progressing in the last few years. The index was at lower levels in the Western Canada region where the market was more stable in terms of pricing.
The real estate prices in Canada are going higher which is influenced by the movements in the Eastern part of Canada. The cost of a home in November was $ 638,300 which is approximately 2.55 % up from last year. In the last month, the 12-month increase has also been observed as the highest since August 2018. This is the highest growth level that has been seen in quite a long time indeed.
The most gains are recorded in Quebec and Southern Ontario
The corridor of Southern Ontario and Quebec has witnessed the largest price gain in the last year. Ottawa has had the biggest profit with a price level of $443,500 in November which is about 11.45 % of growth since last year. Montreal followed up with prices at $380,000 which is about 8.72 per cent growth since last year. In the third place was Niagara which had a price threshold $431,200 that is about 7.99 per cent higher since the last year.
Prices remained low in the Western Canadian real estate segment
In Western Canada, the drop in prices was huge. Regina had prices of approximately $260,600 in November which is about 5.52 % down as compared to last year. Vancouver had prices standing at $1,002,700 which is a 4.59 % drop in prices from last year. Fraser Valley had average prices standing at $826,900 which is a 3.1 % drop as compared to last year. The comparatively lower prices in these markets may spur real estate growth in the short term as per experts.
Eastern Canada has reached new levels in the real estate sector
Most of the large markets of Canada are witnessing peak prices as they are seasonally adjusted. Toronto, Ottawa, Montreal, Niagara, Guelph, Victoria and Hamilton Burlington are all witnessing new peaks. However, a few segments like the detached units are not doing so well. It is worth noticing that many of these markets do not see all-time profits for an average sales price range.
Other factors worth noting
Regina lies at the end of the list with a typical price drop of 5.72 per cent, touching $260,600 in November. Edmonton has witnessed a fall in prices, standing at approximately $319,400 seeing a loss of 14. 55% in peak pricing. Calgary had prices of $414,200 which is a loss of about 10.09%. These markets have not seen any price gains in the last few years and hence they were not included in the recent National Price Rally.
Even though the real estate prices are gradually rising in Canada, the growth is very low on an average. Regionally, Eastern Canada is only seeing a boom. Other regions can only hope for better performances in the New Year. This will be driven by their current low price thresholds and price growth may start again from the second half of 2020 as a result.