The Canadian Real Estate Association (CREA) announced on Friday that Canada’s Home Price Index measured increases in Canadian real estate value in April. Compared year over year, Canada saw a 5.2 per cent price increase in home value—a rise that was led by Toronto.
A part of a continuing value increase trend, April’s figures were similar to March and February although it was the smallest percentage increase since August 2011.
The leading region was Toronto, coming in with the largest raise in value, up 7.9 per cent. This was followed by Calgary at four per cent, Vancouver at 3.7 per cent, Fraser Valley at 2.7 per cent and Montreal at 2.3 per cent. These figures showed a slowdown of rising prices in Vancouver while Montreal’s usually regularly stable market saw a small jump comparatively.
“Canadian home price gains are generally expected to moderate, but there are a few hot spots where prices are being fuelled by some very strong housing market fundamentals,” said Wayne Moen, CREA’s President. “Toronto has less than two months of supply compared to six months nationally, so it ranks among the tightest of Canadian housing markets. With prices moderating in some housing markets and bucking the trend in others, buyers and sellers should talk to their local REALTOR® to best understand how home price trends are evolving where they live.”
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Real estate values were different between types of properties as well. Single Family homes showed the biggest year over year gains in April, up 6.4 per cent. This increase was led by two storey single family homes which saw an increase of 6.9 per cent while one-storey single family homes came in at 5.6 per cent. Other properties, such as townhouses and apartments saw increases as well, coming in at 3.6 per cent and 2.7 per cent respectively.
“Just as there are some pretty clear differences emerging across markets right now, there have also been some interesting developments in price trends across housing types,” said Gregory Klump, CREA’s Chief Economist. “The one that really stood out in April was accelerating price growth for the townhouse segment right across the board. In Vancouver and the Fraser Valley, it was the only segment in which prices gains accelerated.”