Across Canada home prices are up, making Canadian real estate increasingly valuable. The average price for residential properties increased 11.2 per cent over the past last year to $503,301.
Toronto’s fast-paced real estate market has played a significant role in growing Canada home values. Last month, Toronto sold homes averaged $622,120. However, even if Toronto and its equally thriving cousin Vancouver are removed from the calculations, buying residential real estate in Canada had an average cost of $374,760, 8.4 per cent higher than the previous June.
Regardless of how the numbers are computed and aggregated by the Canadian Real Estate Association (CREA), home values are rising. The CREA’s Aggregate Composite Multiple Listing Service Benchmark, which adjusts for variables in sales activity, shows a 13.6 per cent gain in prices, the largest since 2006. Eight of the 26 major regions show double-digit increases in sales price since June 2015. Assessed by province, only four reported a decline in the average price when seasonally adjusted.
Contrary to the nationwide home price increases, the recent market update shows a 0.9 percent decline in the sales volume. Half of the markets experienced lower numbers. The CREA report indicates the available inventory is at a six-year low across Canada.
Toronto real estate has been experiencing a decline in new listings for some time. June 2016 saw 3.8 per cent fewer new listings than June 2015. Properties are still moving quickly thanks to high demand, and that demand part of the reason why Canadian real estate values have risen.
To summarize, Canada real estate is reporting a six-year low for inventory and a ten-year high for residential home cost. Lower supply with demand is driving real estate across Canada, not just in Toronto.
For a complimentary market evaluation of your home, contact Barry Cohen Group today.