— Canadalend.com, the leading low-cost, private mortgage solution provider in the country, reacts to strong monthly housing data where the average price of a Canadian home increased by 17% year over year in January. The company also weighs in on the outlook for the Canadian housing market.
According to the Canadian Real Estate Association, the average price of a Canadian home sold in January increased by 17% year over year to $470,297. The January increase helped boost national sales activity to the highest levels since 2009. Most of the growth was fuelled by strong demand in the Greater Toronto Area and Lower Mainland of British Columbia. (Source: “Canadian home sales rebound in January,” Canadian Real Estate Association web site, February 16, 2016; http://creastats.crea.ca/natl/index.htm.)
“Last year’s momentum has carried into 2016, but it’s important to note that this data continues to illustrate how the Greater Toronto Area and Vancouver can skew the facts. And that for most of Canada, housing remains very affordable,” says Bob Aggarwal, president of Canadalend.com. “When Toronto and Vancouver are removed from the data, the average Canadian home price increases by 8.0% to $333,392.”
Despite the strong double-digit annual national growth in January, there are signs the Canadian housing market is steady on a local level. Prices actually declined in four provinces in January, including Alberta, Saskatchewan, Nova Scotia, and Newfoundland.
“As we head into the traditionally strong spring real estate season, the Canadian housing market should remain robust with prices appreciating faster in the GTA and Vancouver,” Aggarwal explains. “That said, tighter mortgage regulations requiring a larger down payment on homes that cost between $500,000 and $1 million, which took effect in February, could cause sales activity across in some regions to ease a little.”
Canadalend.com is one of the largest private mortgage brokers in Canada, providing its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addresses financing concerns.
Release ID: 106501