In positive news for Canada’s housing market, two new reports released this week indicate rising sales activity across the country.
The Canadian Real Estate Association’s MLS Home Price Index – which uses real estate data from 15 major cities – for July 2018 showed an increase of 2.1% from July of last year, marking the first month in over a year where the average prices in Canada have grown on a year-over-year basis.
Similarly, the Taranet-National Bank National Composite Housing Price Index, shows an increase of 1.8% on a year-over-year basis, using property records for 11 of Canada’s major cities.
Condos continue to be in demand
According to the CREA report, condominiums are still the most popular purchase choice, with a sales volume up 10% year-over-year. Single-family homes saw a slight decline, which is on-trend for 2018, but the decline was smaller in July than we have seen in prior months, which could indicate that the market is beginning to recover.
Prices in British Columbia are picking up
Major cities in B.C. shows double-digit gains year-over-year, according to the CREA’s index. This includes a 13.83% gain for Fraser Valley and a 10.63% gain for Vancouver. In fact, according to the index, prices in B.C. are rising faster year-over-year than they are in Ontario, where the Greater Toronto Area saw a decrease of 0.59 %.
While a major effect of 2018’s climate has been the sale of more affordable properties, like condos, these year-over-year numbers are promising and indicate that a more balanced housing market could be on the way for major cities, including Vancouver.