Canada’s home prices posted a double-digit gain in the second quarter, pushed by strong growth in the Greater Toronto areas and a rebound in the west coast markets, according to a report released Thursday by brokerage Royal LePage.
The Royal LePage National House Price Composite, gauging the 53 largest real estate markets across the country, increased 13.8% year-over-year to C$609,144 (US$478,726) by the end of June.
More:Click to Read About Canada's Luxury Homes and Real Estate News
Home prices in the Greater Toronto area surged 24% from a year ago to C$790,997 (US$621,644), while Greater Vancouver saw a 2.6% increase to C$1.18 million (US$928,390).
"The rate of national house price appreciation that we experienced in the second quarter continues to be above what we would consider a normal range, driven primarily by very strong year-over-year price growth across much of Ontario," Phil Soper, chief executive of the brokerage, said in the report.
Although the price growth in Greater Vancouver is moderate this quarter, it marked a strong recovery from significant market downturns since last August, when the provincial government of British Columbia imposed a 15% foreign buyers’ transfer tax and other market cooling measures.
More:Foreigners Account for 5.8% of Property Transactions in Vancouver
Home prices in North Vancouver increased 7.5% year-over-year to C$1.37 million (US$1.07 million), while the city of Vancouver remained relatively flat, rising 0.1% to C$1.38 million (US$1.09 million). During the same period, the region’s most expensive market of West Vancouver fell 4.7% year-over-year to $3.01 million (US$2.37 million).
Home prices in the Greater Montreal area, meanwhile, increased 6.7% in the second quarter, with downtown Montreal posting near double-digit growth.
Mr. Soper said that Montreal has one of the healthiest residential real estate markets seen in a generation. "Montreal celebrates its 375th anniversary this year, and with the celebration comes a sense of renewed optimism," he said.
During the second quarter, the overall health of the Canadian economy has been a major contributor to the property market, according to Royal LePage. Canada’s GDP is now expected to exceed the 2.6% growth rate previously forecast by the Bank of Canada. The country’s unemployment rate reported in May was 6.6%, a nine-year low.
| Home Prices in Canada' s Major Metropolitan Areas | |||
| Market | Q2 2016 | Q2 2017 | Y-O-Y Change |
| 53 City Composite | $535,498 | $609,144 | 13.80% |
| Greater Montreal | $350,290 | $372,071 | 6.20% |
| Greater Toronto | $675,241 | $837,232 | 24.00% |
| Greater Vancouver | $1,151,759 | $1,181,309 | 2.60% |
| Source: Royal LePage | |||
Separately, a monthly report released Thursday by the British Columbia Real Estate Association showed that residential sales fell 9.6% in June year-over-year to 11,671 units. The average price in the province was C$725,778 (US$570,389), up 4.4% from a year ago.
"Although home sales remain well off the record pace set last year, demand is still quite robust," Brendon Ogmundson, the association’s economist, said in the report.