Year-over-year gains in home prices continue to rise, though the increase in March was the smallest since last June, according the latest data from the country’s largest real estate organization.
The Canadian Real Estate Association’s Aggregate Composite MLS Home Price Index in March was up 5.1 per cent year-over-year – on par with the gain in February and the smallest increase since June 2011.
Toronto posted the largest year-over-year increase (7.3 per cent), followed by Vancouver (5.3 per cent), the Fraser Valley (3.3 per cent), Calgary (2.6 per cent), and Montreal (2.2 per cent).
Year-over-year gains were largest for one-and two-storey single family homes, which rose 5.4 per cent and 6.8 per cent respectively. Apartment prices climbed 3 per cent, and townhouse prices were up 2.6 per cent.
“The index typically experiences these types of month-over-month gains in the spring, which coincides with when the balance of supply to demand is tightest,” said Gregory Klump, CREA’s chief economist. “With that in mind, it’s important to look at month-to-month movements in the context of how they compare to the same period in previous years. While the overall monthly price increase was on par with last year’s figure, it masks slowing price momentum in the Lower Mainland area of British Columbia. Slower price gains there were offset in March by a modest acceleration of price gains in Calgary, Toronto, and Montreal.”