Canada’s real estate market shows the strongest price growth in a decade
Due to significant political changes in the world and a number of federal measures aimed at improving the affordability level in the country, last year turned out to be a strong hit for the national real estate industry. And the latest data from the Canadian Real Estate Association only proves it.
The recent report by Better Dwelling shows the national average price for all types of homes rose by 14.4% last year and reached $581,400. It’s the largest increase in ten years, which almost reaches 14.43% reported in 2006.
The main reason for such growth is an extremely high activity in two Canadian hottest housing markets. In 2016, the Vancouver composite home price rose to an average of $908,300 level, and Toronto showed $689,100.
Meanwhile, real estate sales in Metro Vancouver were down by 5.6% last year, ending the dynamic year in one of the most discussed markets in Canada.
The benchmark price index was only 2.2% down over the last 6 months in Vancouver, but pricaes are still up by impressive 18% in December over the last year. Recent slide was mostly caused by the federal measures taken in order to improve the affordability level: a new 15% tax for foreign buyers and a tax for vacant properties.
In the same time, Calgary kept struggling with Alberta’s weak performance (particularly, after an oil prices decrease and the Fort McMurray fires). Home prices here fell by about 3.97%.