Canada’s Real Estate Index: A Slow And Steady Climb
Canada’s real estate market has been in recovery 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 percent higher in September, which represented year-over-year gains of 0.66 percent. 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.
As far as the Toronto index, it reached a new all-time high, largely led by the condo market and it comes 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.
“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. “Homebuyers are more willing to make offers today, particularly in the townhome and apartment markets.”
Overall, the Canadian market is experiencing a slow and steady trudge 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.”