Toronto is pulling home prices upwards, while other markets continue to moderate, according to the latest data from Canada’s national real estate association.
The Canadian Real Estate Association’s MLS Home Price Index, was up 5.2 per cent in April compared to the same time last year, led by a 7.9 per cent spike in Toronto.
More modest gains were seen in Calgary (4 per cent), Vancouver (3.7 per cent), the Fraser Valley (2.7 per cent), and Montreal (2.3 per cent).
Single family home prices again posted the biggest gains (6.4 per cent), with apartment unit and townhome sales making more modest headway (3.6 and 2.7 per cent respectively).
According to CREA, the moderation in overall price gains in recent months masks diverging trends among the major Canadian markets.
“Just as there are some pretty clear differences emerging across markets right now, there have also been some interesting developments in price trends across housing types,” said Gregory Klump, CREA’s chief economist. “The one that really stood out in April was accelerating price growth for the townhouse segment right across the board. In Vancouver and the Fraser Valley, it was the only segment in which prices gains accelerated.”
While Toronto’s price index accelerated for the second straight month, Calgary is another hotspot, said the report, supported by a strong economic outlook, recent gains in in-migration, and strong full-time job growth.
“Canadian home price gains are generally expected to moderate, but there are a few hot spots where prices are being fuelled by some very strong housing market fundamentals,” said Wayne Moen, CREA’s president. “Toronto has less than two months of supply compared to six months nationally, so it ranks among the tightest of Canadian housing markets.”
The MLS Home Price Index is compiled monthly and is based on prices for one- and two-storey single-family homes, townhouses and apartments in several key markets across Canada.
On a month-to-month basis, the overall index stood at 154.7 at the end of April, up 1.18 percentage points from February.