Canadian real estate in the “middle of the pack” globally: Report

Canadian real estate in the “middle of the pack” globally

Canada’s housing market is still chugging along steadily as sales activity nudged higher and prices continued to climb in November, data from the Canadian Real Estate Association said Thursday.
Canada’s housing market is still chugging along steadily as sales activity nudged higher and prices continued to climb in November, data from the Canadian Real Estate Association said Thursday.

Photograph by: Tyler Anderson, National Post

Canada’s housing market is maintaining a strong presence and in the 13th year of a housing boom, average prices for homes in many Canadian cities continue to rise, according to a new report on global real estate trends.

The report from Scotiabank Group says that Canada is “in the middle of the pack” at the international level, with the average price of homes jumping about 85 per cent over the 13-year period after adjusting for inflation.

By contrast, the report said Ireland “by far” experienced the largest housing boom, with a spike of nearly 330 per cent between 1992 and 2007, while U.S. homes were among the least overvalued properties, with prices dropping back to levels experienced in the mid-1990s.

The report said Canada was a little slower out of the gate in terms of its housing boom, which could be why it didn’t rank higher.

“The relatively smaller cumulative price increase compared with some of the frothiest markets reflects in part a later takeoff,” the report reads. “Canada’s residential real estate boom started several years later than many of its counterparts, with the economy still feeling the effects of the deep recession of the early 1990s and weak labour markets through mid-decade.”

The report also said Canada, along with Australia, France, Sweden and Switzerland, is still experiencing record-high real estate prices.

It said Vancouver still boasts the highest real estate prices in Canada — by a long shot — outpacing the No. 2 city, Toronto, by more than $320,000. Citing figures from the Canadian Real Estate Association, the report said the west coast city had a year-to-date average price of nearly $787,000 in 2011, which is up from about $675,000 in 2010. In 2006, the average price of a home in Vancouver was less than $510,000.

In Toronto, the average price was up roughly $33,000 to almost $466,000 in 2011; the average price was up about $17,000 in Ottawa to nearly $346,000; Montreal jumped $14,000 to $307,000; Halifax spiked nearly $8,000 to more than $261,000; while Calgary saw a more modest increase of less than $4,000 to about $402,000.

Of the major Canadian cities listed in the report, Edmonton was the only city to experience a real estate price drop between 2010 and 2011. The average real estate cost there is just shy of $325,000 so far in 2011. In 2010, the average cost was nearly $329,000.

 

 

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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