Planning to buy or sell a house? Then you might be interested in this. According from reports gathered by the Canadian Real Estate Association in October 2014, the average house price in Canada jumped up 7.1% compared to how much properties were priced last year. This means that the average Canadian home sells for $419,699 in 2014.
Inflation of Prices or Increasing Demand?
It seems that the average Canadian home is at it’s highest value at present time with this report by CREA, or does it mean something else? There is some talk of this price increase as nothing more than inflating house prices but another camp says that this is a good indicator as this housing price increase is also accompanied by an increase in demand. In fact, the actual number of homes which were sold in the same period increased by 7% as well, which can mean that the higher prices was fueled by demand and not just inflation of the market.
CREA said in a press release that as of October 2014, the real estate industry has been enjoying it’s 6th consecutive month of better resale activity compared to a similar period in the previous year. This means that the housing market is hotter than it normally is at present time, as people often buy and sell houses during the summer and spring months. TD Bank adds that average sales this year are running at 10% above their previous 10 year average
The Hot Markets and Not-So-Hot Markets
The tiger markets of Vancouver and Toronto are skewing the national average towards an increase although 9 cities across Canada suffered a decline of -0.3% to -14%; namely Sherbrooke, Gatineau, St Catharines, Newfoundland & Labrador, Quebec City, Ottawa, Saguenay, Winnipeg, and Halifax-Dartmouth. In fact, if Toronto and Vancouver are to be taken out of the computation, the average price for the rest of the country will not be $419,699 but rather only $330,539. It’s not totally bad though, as that still means an increase of 5.4% as compared to the overall average of 7.1%. True, the housing market is looking a bit bleak at Sherbrooke, Quebec with the house prices declining 14% in the past year, but the other 8 on the list above ranged from only 3.7% to 0.3% decrease.
The Best Investments?
The CREA noted that the increase of house prices is not the same across all types of housing. It looks like two-storey family homes are the ones experiencing the biggest price increase, and then closely followed by row units or townhouses and lastly, bungalows – definitely good news for owners of such properties. For those who have condos and apartments, there is still some good news. Prices for apartments and condos increased an average of 3.5 from last year. TB Bank says that they still believe that the housing activity would self-moderate but it is not likely to occur until interest rates get a bit higher by year-end of next year.
Want to get in where the action is? Invest in a home in Oakville! With Vancouver and Toronto at the top of the Canadian housing market, what better time is there to gift yourself with a beautiful luxury home than now? Contact us for a viewing soon!