The price of a home in Canada breached $500,000 for the first time ever last month, thanks largely to strong markets in Vancouver and Toronto. The price jump represents year-over-year growth of 16.4%.
Without the helping hand of the two cities, the national average would hover around $355,000, according to the Canadian Real Estate Association. If B.C. and Ontario are excluded entirely, the number drops again to $291,000.
Sales were up 18.7% as well year-over-year. Despite this, a greater number of cities posted declines in sales activity rather than gains, but Vancouver, Toronto, and Montreal all leant a hand in keeping national sales activity afloat.
“The number of single family home sales above one million dollars is rising in Greater Vancouver and the GTA,” says CREA’s Chief Economist Gregory Klump in a release. “Tightened mortgage regulations apply to homes selling above five hundred thousand dollars and below a million dollars. The tighter regulations combined with a short supply of single family homes will restrain transactions below one million dollars.
“If recent trends continue, home sales above one million dollars will account for a greater share of activity and will further fuel year-over-year average price increases in these markets.”
He adds markets without a supply shortage like the ones seen in Vancouver and Toronto will continue to see modest gains.
Metro Vancouver saw year-over-year increases of 22.2%, while Toronto saw growth of 11.3%. Calgary saw a 3.5% year-over-year reduction for February.