Home prices in the two largest housing markets in Canada, Toronto and Vancouver, both gained steam in November, according to the latest data by regional trade groups.
The benchmark home price, which takes into consideration factors that average and median prices do not, such as lot size, age and number of rooms, rose 8.4% annually to C$744,700 (US$586,757) in November throughout the Greater Toronto Area, according to a monthly report Tuesday by The Greater Toronto Real Estate Board.
For the Greater Vancouver Area, the benchmark home price reached C$1,046,900 (US$824,863) in November, a 14% increase year-over-year, according to the Greater Vancouver Real Estate Board.
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Home demand in the GVA remained stabilized
Throughout the Great Vancouver Area, there were 2,795 residential transactions in November, a 26.2% increase from the same month in 2016. It was also 17% higher than the 10-year sales average for the month, according to a monthly report Monday by the Real Estate Board of Greater Vancouver.
"We’re seeing steady demand in today’s market," Jill Oudil, the board’s president, said in the report. "Home buyer activity is operating above our long-term averages, particularly in our townhome and condominium markets."
Sales of apartments reached 1,508 in November 2017, a 25.7% increase compared to the 1,200 sales in November 2016. The benchmark price of an apartment was C$648,200 (US$510,723), rising 23.9% from November 2016.
A total of 841 detached properties, or single-family homes, sold in November, a 31.8% increase year-over-year. The benchmark price for this popular property type was C$1.61 million (US$1.27 million), up 6.1% from November 2016.
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Toronto market is ‘over and above’ seasonal trends
The Greater Toronto Area (GTA) had 7,274 home sales in November, representing a 13.3% fall from the same period in 2016. The city of Toronto alone accounted for more than 40% of the total sales in the region.
However, the number of home sales in November was 4% higher than the previous month, outperforming usual seasonal trends.
"We have seen an uptick in demand for ownership housing in the GTA this fall, over and above the regular seasonal trend," Tim Syrianos, president of the Greater Toronto Real Estate Board, said in the report.
The monthly growth is in large part responsive to government housing policies.
"Similar to the Greater Vancouver experience, the impact of the Ontario Fair Housing Plan and particularly the foreign buyer tax may be starting to wane," Mr. Syrianos wrote.
"On top of this, it is also possible that the upcoming changes to mortgage lending guidelines, which come into effect in January, have prompted some households to speed up their home buying decision," he continued.