House prices continue to rise at the fastest pace, says realtor group.
The average price of a Canadian home was $503,301 a month ago. Sadly, that figure has increased by 11.2% in 2016, which is approximately about $559,670.
During a press release held on Friday, CREA reported that hot markets including Vancouver and Toronto are the leading factors behind this change as house prices within those areas continue to skyrocket. The association believes if there’s stability in those respective housing markets, then perhaps the average price would be $374,760 in June, an 8.4 percent increase compared to last year.
The association added that the average figure doesn’t necessarily help folks get the bigger picture of the market. However, it recommended using an Aggregate Composite MLS Benchmark Price, because “average price trends are prone to distortion by changes in the mix of sales activity from one month to the next.” they stated
Moreover, the aggregate is also showing a red hot market: a 13.6 percent increase to $564,700 this month.
This is the highest increase recorded since 2006.
Vancouver and Toronto have played a role in driving the gains. However, other areas are still being affected.
“We would normally insert the standard disclaimer that the national figures should be treated with caution due to the wildly differing performance at the regional level,” BMO economist Doug Porter said. “But, the double-digit increases are spreading: Of the 26 major regions covered, eight saw double-digit average price gains in June.”
Although prices continue to increase, the demand for houses is dropping drastically. This is simply because future buyers are often discouraged by the insane prices tags.
CREA president Cliff Iverson said “While home sales activity and price growth are running strong in B.C. and Ontario, they remain subdued in other markets where homebuyers are cautious and uncertain about the outlook for their local economy,”.