Home prices to slow down from biggest annual gain in a decade

Canada’s residential real estate prices gained 13% in Q4 from a year earlier, recording the highest year-over-year rise in more than a decade, Royal LePage says.

The aggregate residential price rose to $558,153, largely supported by gains in the Greater Toronto Area and Greater Vancouver.

Read: Toronto-area home sales hit record in 2016

But expect the Toronto and Vancouver regional extremes to narrow in 2017, with a price correction in Vancouver and strong but moderating price appreciation in the GTA, the report says. The agency expects prices to trend upward in Quebec, Atlantic Canada and Alberta.

Read: High-end home sales in Toronto set to dominate for another year

Prices

The price of a two-storey home rose 14.3% year-over-year to $661,730; the price of a bungalow, 12.5% to $481,460; and the a condominium gained 7.4% to $356,307. Aggregate prices are calculated using a weighted average of the median values of homes.

Over 2017, Royal LePage forecasts the aggregate price of a home will increase 2.8%, slowing significantly from 2016.

Note: Data is compiled from Canada’s 53 largest real estate markets. Numbers shown are aggregates of two-storeys, bungalows and condos — the three most common housing types in Canada.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.