Home prices in the Canadian real estate market continues to soar as home values in the Greater Toronto Area show no sign of cooling down. The Teranet- National Bank Composite House Price Index released on Tuesday shows home prices continue to increase. The Vancouver market has also begun to recover after a drop by the end of 2016.
Home prices in January increased by 0.5% and it was also a 13.0% increase over the same period last year.
Home prices for over a year have been on the increase since the largest increase in January 2007. The driving force behind the increase in prices in January was thanks to the Toronto market with an 0.8% increase.
Hamilton real estate market also had a 1.1% increase with high home prices excluding numerous resident buyers.
In 2016, Toronto and Hamilton had a yearly increase of 20.9% and 17.6% respectively.
The low Canadian currency had led many buyers into borrowing more which led the government to introduce tougher mortgage rules to cool down home prices.
But the expected measures to cool down home prices will take a while to have an effect on the market as the housing market in Canada begun with a great start. This indicates home prices will continue to rise through the year.
After home prices declining by the end of 2016, Vancouver home prices saw a 0.3% increase in January indicating home prices in the city are recovering as the tax imposed by the government had some impact on home prices.
Although home prices were 16.4% higher than they were in January 2016, they were however 2.5% lower than they were in September 2016.
Nevertheless, home prices increased in other housing markets including Montreal, Victoria, Calgary and Quebec City. Home prices in Halifax were however stable while prices dropped in Winnipeg, Ottawa and Edmonton.