Average House Price In Canada Rose 7.1% YOY

“The average resale price of a Canadian home continued to march higher, with the national real estate association showing it hit $416,584 in May, a rise of 7.1 per cent compared to the same month a year earlier.
The Canadian Real Estate Association said sales activity in Toronto and Vancouver continue to skew the average price higher. If those two cities are stripped out, the average Canadian home is worth $336,373 while the year-over-year increase shrinks to 5.3 per cent.”

CBC 16 Jun 2014

Recall:

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30 responses to “Average House Price In Canada Rose 7.1% YOY

  1. Whipmaster~kerthwack!

    There’s quite a divergence between Canada and the U.S. It obviously was different here since around 2006. Any ideas why?

    • US was in a giant housing bubble secondary to lax lending and speculation. Canada, too.
      Bubble burst in the US.
      Interest rates dropped to zero to bail everybody out.
      Canadian housing was bailed out before we’d even collapsed (there’s your difference). Canadian market was juiced even more; way more than justified by circumstance (blame BOC, MinFin, banks, etc.).
      Lax lending has continued by virtue of ongoing ’emergency’ monetary policy. Interest rates preposterously low.
      Canadian bubble continues into stratosphere secondary to easy money and momentum-driven “it’s-different-here” speculation.

      7% per annum is completely unsustainable.
      The longer this goes on, the bigger the fall.
      The market will revert to the (real) mean.

      • Well said, vreaa.

        Just a quick anecdote. A relative of mine — smart, financially savvy — has been renting steadfastly all these years, shaking her head at the madness. Just found out today she and her hubby finally capitulated. Sucked into the vortex. 1.5 mil for a house that would have sold for 400-500K not so long ago.

        The power of the herd is remarkable.

      • Whipmaster~kerthwack!

        Thanks for your reply VREAA. There has been a suggestion that the reason the U.S. collapsed was the investment bankers were making a huge profit deliberately packaging and selling the resulting mortgages to unsuspecting investors, and then at the same time the investment bankers bought insurance that these same mortgages would fail. This is very suspicious no?. Also consider, the rating companies gave these packaged mortgages triple A ratings. So, supposedly it was an engineered implosion by the bankers, as opposed to the Canadian experience which does not use the “Mortgage Electronic Registry System” to package mortgages.

        Yes there were ultra low interest rates but consider the possibility that the ultra low interest rates had nothing to do with bailing the homeowners out. It was the ARM mortgages that actually helped crash the market because of their escalating high interest rates.

      • Might it also be that the world understands how bankrupt, corrupt and broken the American system is? Do Canadians have to factor in war costs? Terrorism, spying, crony capitalism, extreme financial leverage via derivatives, decaying social order, increasing psychosis, depression and drug use massive unployment, extreme drought, drug wars on its southern border, a huge poverty stricken underclass, political infighting and indifference, declining prestige and power on the world stage, denial of great immigrant talent due to terrorism fears, debasement/ replacemement of USD as reserve currency, massive miss on calculation of energy reserves. Stop me any time. We’re talking apples and oranges.

      • I, too, heard the U.S. was in imminent decline. Oh wait, I heard that in the 80s.

  2. pricedoutfornow

    Given the inactivity on vancouvercondo.info in recent months (you have to admit, it’s pretty quiet over there), I’d say there are lots of people who have thrown in the towel and bought. It is pretty exhausting to watch this bubble go on and on for years on end, watching friends and family commit every last cent to that Vancouver teardown. I’ve decided to just not care anymore-talking about a supposed housing bubble in Vancouver does not excite me. I don’t argue with anyone anymore, it’s just such a boring topic. I just remind myself that I have money in the bank, and meanwhile, my friends and family in the Okanagan have been seeing nothing but price declines in housing for the past 5 years. I figure oh well, I can always take my cash and move there upon retirement, I don’t HAVE to commit my next 50 years of earnings to a crappy Vancouver house. There is a life outside Vancouver….meanwhile, in Vancouver, you can enjoy your life and rent a pretty decent place for a good price. No worries here!

    • The other guy

      Pretty much my experience too.

      Career opportunities for me are elsewhere. Vancouver’s been great, but there’s not compelling reason for me to stay here beyond 2015 and I’m glad I didn’t buy the condo I was considering buying several years ago when I moved here. The fees recently spiked due to problems with the building. Retrospectively, renting has cost me ~$75 more a month than buying by my calculations when all costs are factored in. That’s a lot of beer each month, but a lot less to worry about.

      I wish everyone else the best. But paying over a million for a house that would be half that much anywhere else in Canada (other than maybe in inner part of Toronto) is ludicrously unwise and based on a number of assumptions that rely on the psychological problem of recency to seem true.

    • Wow, I’m feeling exactly the same as you described. In the past 3 years, I’ve been telling all my friends and family that the market will decline. I believed it so much, I sold all 3 of my properties b/w 2010-2011. I even make a bet with both my brothers that from 2011 to 2013 the market will decline 10%. I lost that bet, it cost me 2 pairs of Canuck season tickets, the positive was it was the Canucks in 2013 so was happy to lose those tickets.

      I have not thrown in the towel, I am still renting, $ in the bank, but I have stopped talking about it, or at least initiating the conversation. I too don’t care anymore, I’m tired of it. Family and friends keep asking, are you buying? are you looking? They say, the market will never go down and start laughing at me when I say otherwise. Then they go suggest to look in this area and that area and tell me about real estate. So sick of it and so tired of waiting for this correction to happen. My only comfort is reading blogs and comments that share my same view.

      Take care and hope in 2015 we are finally right.

      • Real Estate Tsunami

        Wow,
        I wish I had your problems.
        You sold at the top. You realized you gains, unlike your “advisers” who are sitting on paper gains.
        You are in complete control of your financial destiny.
        Had you invested your proceeds in a balanced portfolio during the last 3 years you’d be way ahead of anyone who’d bought a SFH in the last 3 years.
        Go, buy yourself a nice car, go on a luxury vacation and enjoy the envy on the faces of your home”ower” friends.

  3. Real Estate Tsunami

    I am keeping an eye on the Townhouse market in Richmond.
    During the last 2 months almost all have sales have been below asking.
    During the last few weeks sales below 10% of asking are happening.
    Remember, all RE is local, and Canda wide stats are meaningless.

  4. East Vancouver is dead..

    • Whipmaster~kerthwhack

      Not as dead as Dead~troit, MissedAgain, or Fort Worthless, Tex~ass, or San Bernardin~hole, California.

  5. QUOTE = “Might it also be that the world understands how bankrupt, corrupt and broken the American system is? Do Canadians have to factor in war costs? Terrorism, spying, crony capitalism, extreme financial leverage via derivatives, decaying social order, increasing psychosis, depression and drug use massive unployment, extreme drought, drug wars on its southern border, a huge poverty stricken underclass, political infighting and indifference, declining prestige and power on the world stage, denial of great immigrant talent due to terrorism fears, debasement/ replacemement of USD as reserve currency, massive miss on calculation of energy reserves. Stop me any time. ”

    Blah blah blah.

    The poorest state is Mississippi, and the wealthiest province is Alberta. The average Mississippian is 10% better off than the average Albertan. Our wealth ends where their starts, and they have 49 states that are even wealthier than that.

    You need context. Yes they are suffering: Relative to their position as the wealthiest nation on earth.

    Meanwhile we are a socialist backwater, economically speaking.

  6. Canada is a dead end backwater for any sector of the economy or entertainment

    • Seeking Knowledge...

      Our economy is based on whatever the US don’t find interesting or globally profitable. We either get the US leftovers or get rich from amongst ourselves – think realestate and banking.

  7. To change the subject completely, CMHC’s head Evan Siddall just announced that CMHC will be concentrating on housing “needs”, as opposed to “wants”.

    I don’t think the word “needs” means what Mr. Siddall think it means, but perhaps I’ll be proven wrong. Again.

  8. Real Estate Tsunami

    Changing needs into wants.
    Will be pretty hard to undo the damage the RE propaganda machine has inflicted on the innocent property virgins.

  9. Real Estate Tsunami

    The new owners, Zeng Wei and Jiang Mei, sought permission to demolish the two-story brick house and replace it, at a cost of $4.5 million, with a five-level modern concrete structure with huge windows. The plan horrified some neighbors and government officials, who thought the new building would be too big and unattractive. After the municipality refused to allow the demolition, Zeng’s lawyers appealed to a state judge, who overruled that decision.”…
    —————–
    Disgusting.
    There’s got to be limit to what money can buy and do!

    • If you liked that one, RET… you’re gonna love this one:

      “He likened Vancouver House’s potential buyers to art collectors… Adding to the appeal for international buyers will be an “asset management” programme for absentee owners, with managers performing such tasks as running water through the taps and regularly switching on appliances should an apartment lie vacant for an extended period. It is a concept bound to raise eyebrows in a city where vacancy rates are frequently cited as a downside of foreign participation in the housing market.” – Ian Young

      [SCMP] – Vancouver developer targets world’s wealthy with his ‘52-storey sculpture’

      …”The luxury residential tower is being marketed around the world, including Beijing, Shanghai and Hong Kong, where Gillespie and Danish architect Bjarke Ingels are due to officially unveil the project today.”…

      http://www.scmp.com/property/international/article/1534655/vancouver-developer-targets-worlds-wealthy-his-52-storey

      [NoteToIllustriousEd: I’m sure that Gillespie&Ingels would have preferred to unveil their latest project in Vancouver vs. HongKong – it’s just that the HongKong presentation venue came in at a better PricePoint. Right? Or maybe it was the catering? Either way, they at least had the cohones to admit that it’s all, really, just a case of Gesamtkunstwerk wrought huge.]

  10. Real Estate Tsunami

    They did it “for the family,” Mr. Xiao’s spokeswoman said in a statement.
    ———————–
    That’s what the Mafia Dons said, too.

  11. vancouver realtors

    vancouver is like New York , Yaletown and Coal harbor are Borough’s

    the lions gate bridge is famous like the Golden Gate bridge

    whats next for vancouver realtors?….Rogers Arena is more famous and Historic than Yankee Stadium, Fenway Park and Wrigley Field put together

  12. Whipmaster~kerthwhack

    If you folks do not understand the difference about why the U.S. has collapsed already and why it hasn’t yet in Canada, you are not open to the facts and therefore, no amount of coaching in the proper direction will help you. Canada is the Best Place On Earth…..you can take Californhole and shove it! lol

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