Canadian home price growth rate outstrips several major U.S. cities

Canadian home price growth rate outstrips several major U.S. cities

Canadian home price growth rate outstrips several major U.S. cities

Over the last two decades, residential property prices have grown massively in Canada, especially in comparison with housing costs seen at major cities south of the border.

This was particularly apparent in Toronto. From 2000 up to March 2019, the market’s average home price has increased by nearly 240%, as determined from the Teranet-National Bank of Canada House Price Index.

Using the Case-Shiller Home Price Index for U.S. prices, a Better Dwelling analysis has found that Toronto’s price growth rate during that period was 33.67% greater than that in Los Angeles, and 45.27% higher than San Francisco.

Toronto’s increase was also 61% greater than the growth observed in Seattle, and a massive 133.39% higher than New York City.

Meanwhile, Montreal’s home prices rose by 189% in the 19-year interval, and Vancouver saw 316% growth.

The Montreal figure was found to be 5.43% faster than Los Angeles, 14.50% higher than San Francisco, 26.90% stronger than Seattle, and 83.95% more rapidly than NYC.

Vancouver’s more robust pace was higher by 75% than Los Angeles, 91.10% over San Francisco, and 111.81% over Seattle. The market also outstripped NYC’s home price growth by 207.02%.

The untrammelled price growth evident in Canada’s largest housing markets has pushed the nation’s total outstanding mortgage balance to $1.56 trillion in May, according to figures from the central bank.

Overall mortgage debt grew by 3.64% annually during that month, 22.2% below the year-over-year growth in May 2018. This was also “the slowest annual rate of growth for any May in at least 29 years, with the exception of 2001.”

“That one exception saw interest rates cut multiple times to bring back growth,” Better Dwelling stated. “There are a few signs mortgage growth may have bottomed, pending no external pressure. However, the traditional busy season for real estate sales has mostly passed. That could damper the current momentum.”