Common Dwelling Value Surpasses $800,000; Up 51% Since Pre-Pandemic

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Canadian residence values took one other step up in February, reaching a median promoting worth of $816,720.

The MLS Dwelling Value Index, which removes a number of the volatility from seasonality, recorded a month-over-month achieve of three.5% and a 29.2% leap from a yr in the past.

In Ontario, the common home worth has now surpassed the million-dollar mark, rising almost 26% year-over-year to $1,086,493.

Dwelling resales continued to select up, rising 4.6% from January, whereas the variety of newly listed houses jumped 23.7%. The rise was led by giant features within the Larger Toronto Space, Calgary and the Fraser Valley.

This enhance in new listings is much like the development seen in 2020 and once more in 2021, famous Shaun Cathcart, CREA’s senior economist.

“The actual query is, what comes subsequent? Within the quick time period, count on a minimum of yet another month of stronger gross sales as nearly all of these new listings got here onto the market close to the top of the month, so lots of the related gross sales seemingly gained’t occur till early March,” he famous.

“Ideally, listings will proceed to return out in massive numbers within the months forward. Mixed with greater rates of interest and better costs, we might be at a turning level the place worth progress begins to decelerate and inventories lastly start to get well after seven years of declines.”

The variety of months of stock remained at its all-time low of 1.6 months, effectively beneath the longer-term common of 5 months.

Eradicating the high-priced markets of the Larger Toronto and Vancouver areas, the common worth stands at $638,720, which is $110,629 greater than a yr in the past.

Cross-country roundup of residence costs

Resale costs continued to soar in lots of elements of the nation, together with all through Southern Ontario and more and more in Alberta. In simply the previous month, common costs elevated by $80,100 within the Larger Toronto Space, $60,300 in Barrie, ON, and district, $58,200 within the Larger Vancouver Space and $40,600 in Ottawa. Calgary noticed costs rise by $25,200 and Edmonton noticed a month-to-month achieve of $9,300.

“Calgary’s market has exploded to the upside, with the benchmark worth up 34.6% annualized over the previous three months, the quickest clip because the heady days of 2006,” famous BMO senior economist Robert Kavcic. “Relative affordability and $100 oil have clearly turned buyers to that market.”

Right here’s a have a look at some extra regional and native housing market outcomes for February:

  • Ontario: $1,086,493 (+25.8%)
  • Quebec: $498,688 (+18.3)
  • B.C.: $1,104,098 (+24.4%)
  • Alberta: $482,255 (+15.5%)
  • Barrie & District: $940,600 (+37.8%)
  • Larger Toronto Space: $1,340,000 (+35.9%)
  • Halifax-Dartmouth: $459,200 (+33.5%)
  • Victoria: $944,500 (+26.3%)
  • Larger Vancouver Space: $1,313,400 (+20.8%)
  • Larger Montreal Space: $545,900 (+20.3%)
  • Ottawa: $730,300 (+15.9%)
  • Calgary: $484,000 (+15.7%)
  • Winnipeg: $342,400 (+13.5%)
  • St. John’s: $292,900 (+10.9%)
  • Edmonton: $348,900 (+6.9%)

CREA updates its housing market outlook

Together with the February gross sales knowledge, CREA additionally launched an replace to its 2022 forecasts, with upward revisions to each whole gross sales and common costs anticipated for 2022.

The affiliation now expects 612,800 properties to commerce fingers this yr vs. 610,700 beforehand. This could characterize an 8.1% decline from 2021 gross sales.

It additionally sees an annual common sale worth of $786,000, an almost $47,000 enhance from its preliminary forecast launched in December. Ought to that come to fruition, that might characterize an annual achieve of 14.3% over 2021 costs.

“Not surprisingly, that is greater than the earlier forecast, as costs have continued to set new information, reflecting the unprecedented imbalance of housing provide and demand,” CREA famous.

Looking forward to 2023, it added that residence gross sales ought to proceed to stay sturdy whereas transferring slowly again to its longer-term common. “Restricted provide, greater costs and better rates of interest are anticipated to additional faucet the brakes on exercise and worth progress in 2023 in comparison with 2022, significantly in Canada’s costliest markets,” the affiliation added.

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