Canadian real estate prices have seen a major hike in recent months. According to the Teranet National Bank of Canada House Price Index or TNC HPI, it has been seen that prices touched an all-time high in August 2019. The sudden rise in prices has taken place due to major contributions from smaller markets as per reports. In fact, apart from Vancouver, almost all cities witnessed price growth last month.
The C11, which is the index of Canada’s largest real estate markets, also reached a new high last month. The aggregate increase went up to 0.41%, and currently stands at 0.61% as compared to the same month last year. Out of this, about 2/3rds of price movement was recorded last month and the reverse of growth deceleration was noted for the first time in several months. However, in spite of the market reaching an all-time high, not all markets were positively affected by this trend.
Key trends to ponder over
In Toronto, the prices saw an all-time high even without detached homes noting many sales. The index reflected that there was an increase in 0.80% in August and has currently gone up 3.79% from the same months last year. The prices are now 0.11% below the highest watermark reached in July 2017. The hike has mostly been due to the phenomenal sales in condos in spite of detached homes not making many sales.
In Montreal, the prices showed a great increase last month, with the index rising 1.12% in August and now the increase in up by 5.75% from the same month last year. The prices of Montreal are the third largest increase in Canada with only Halifax and Ottawa ahead of it.
In Calgary, on the other hand, where the market was under a huge slump for quite some time, things have finally started to look up. The index of the city fell 0.56% in August and is only down just by 2.26% from the same month last year. Prices have fallen by 5.90% from the peak time reached in October 2014 and may finally recover after a long period of slow growth.
Overall, it can be said that the prices are now in one of its best places and the growth increased for the first time in a couple of months. While it cannot be said that the price growth in one month has completely reversed the downtrend, it is definitely a direction towards the better. However, that the price improvement came right before the government injected cash in the economy is significant. Also, it should be noted that the most of the price increase in the city is as a result of the first time buyers who have finally decided to make a move and purchase their first home because of the new stress on affordability.
Overall, Canadian property prices are in a good place and it remains to be seen whether demand levels maintain the same momentum going forward. That will surely keep prices growing, much to the delight of investors and property owners alike!