Canadian real estate saw the price of a ‘typical’ home rise to $ 73,000 last month

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Everyone thinks their real estate market is hot, but almost all of them don’t realize they are. Data from the Canadian Real Estate Association (CREA) shows significant home price gains in January. Not just for the year, but for the actual month. The increases were in fact so large that nearly two dozen markets saw prices soar by 5 digits.

The price of a typical house in Canada increases by $ 79,800

The price of a typical home across Canada has risen sharply, not only over the year, but over the past month. The benchmark price reached $ 669,000 in January, up 2.2% (+ $ 14,400) from the previous month. This is an increase of 13.5% ($ 79,800) from the same month a year ago. To say that this is an astronomical increase in house prices nationwide is an understatement.

Canadian real estate benchmark price

The benchmark price for a typical house in Canada, in Canadian dollars. Source: CREA, Better living.

Home prices are rising at the fastest rate since 2017

This rate of price growth is very unusual and has not been seen for a few years. With a typical home increasing $ 79,800 from the previous year, this is the biggest annual gain in dollars since May 2017. As for the 13.5% increase, that is also the rate. highest annual growth since June 2017. While this looks a lot like a reduction from 2017, there’s one big difference – it’s not just Toronto or Vancouver. It’s almost all the markets in the country. Even places where the population is declining.

12-month change in Canadian real estate prices

The 12-month increase for a typical house in Canada, in Canadian dollars. Source: CREA, Better living.

Only 5 markets experienced a negative monthly movement

Only 5 markets experienced a negative monthly movement last month. Regina and North Bay both saw their prices drop by $ 5,600 in January. Saskatoon saw a typical house drop $ 1,700, and the Kawarthas saw a drop of $ 1,000. Edmonton had the smallest drop, with typical home prices falling $ 700 in the month, and that’s it. Not a single real estate market in Canada has experienced a negative annual price movement either.

Prices in a Toronto suburb jumped over $ 73,000 last month

In contrast, 37 markets saw big monthly gains, with 12 in the 5-digit range. The biggest gain came in the expensive Oakville suburb of Toronto, where the price of a typical home hit $ 1,259,300. The market was up 6.2% (+ $ 73,600) from just one month. The 12 month increase for a typical house in the area is an increase of 20.1% ($ 210,900). The house must have gone to an Ivy League school.

Monthly change in Canadian real estate prices

The monthly change in the price of a benchmark home in Canadian dollars in January 2021. Source: CREA, Better living.

TO Suburb sees $ 34,000 increase in one month

Mississauga, another suburb of the GTA, posted the second-largest monthly gains. The benchmark price reached $ 993,300 in January, up 5.38% (+ $ 34,300) from the previous month. The 12-month price increase is 12.0% (+ $ 106,500) from last year. It was one of 11 markets with a 6-digit increase in the past year.

12-month change in Canadian real estate prices

The 12-month change in the price of a benchmark home in Canadian dollars in January 2021. Source: CREA, Better living.

Home prices in Toronto have been close to average

The GTA’s massive price gains, on the other hand, appear much calmer, but are still close to historical levels. The benchmark price for a home in the area reached $ 927,700 in January, up 2.0% (+ $ 18,200) from the previous month. This represents an increase of 11.9% (+ $ 98,900) from last year. Mississauga, which we just talked about, is actually one of the regions of the GTA. This indicates that the suburbs helped propel the numbers up and the city likely underperformed.

Home prices in Metro Vancouver increase by $ 9,200

Metro Vancouver’s gains have also been very large, but seem almost tiny compared to suburban Ontario. The benchmark price reached $ 1,056,600 in January, up 0.9% (+ $ 9,200) from the previous month. Compared to last year, prices are now 5.48% (+ $ 54,900) higher. It’s a little surprising to see an increase of over $ 50,000 not even register as a major move, but that’s where the national market is these days.

Home prices in Montreal increased by $ 7,500 last month

Home prices in Montreal are booming, but are not quite at the levels seen in southern Ontario. The benchmark price reached $ 434,000 in January, up 1.8% (+ $ 7,500) from the previous month. This represents an increase of 16.7% (+ $ 62,000) over the previous year. Again, massive increases. It just seems modest compared to other markets across the country.

Home prices have not only had a strong year across Canada, they have climbed very high last month. The monthly increase in some markets is higher than the annual wages of most Canadians. Nor is it a question of notoriously tight markets with booming economies. Almost every market in the country is showing significant gains, from British Columbia to Newfoundland. Untargeted increases across a country typically occur for two reasons: the economy is booming, or there is too much stimulus in the credit pool.

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