Canadian real estate prices are seeing the rate of growth accelerate once again. The Canadian Real Estate Association (CREA) Home Price Index (HPI) shows prices surged in November. Even as the inventory squeeze eased a little, buyers bid up home prices at an even faster rate. Annual home price growth is at a record high, and it’s been accelerating.
Canadian Real Estate Prices Hit A Record High
The price of a typical, or benchmark, home across Canada has never been higher. The record composite price was $780,400 in November, an increase of 2.35% ($17,900) from the previous month. Annual growth hit a rate of 25.31% ($157,600) as well. Once again, this is a record for prices. A typical home across Canada jumping $17,900 in a month is hard to believe, but it happened. Again. Did we mention this is across Canada?
Canadian Home Prices Have Never Seen Faster Growth And It’s Accelerating
The prices aren’t the only record being set, but growth is also moving at the fastest rates in history. The monthly increase is the largest since April. Annual growth at 25.31% means a new record high for the CREA composite benchmark. Price growth hasn’t eased, it’s actually accelerating as moral hazard sets in.
Canada Housing Inventory Is In A Squeeze As Demand Gets A Boost From Monetary Policy
If you heard home prices are rising due to a lack of inventory, you heard correctly. Well, sort of. Seasonally adjusted existing-home sales reached 54,222 units in November. This is an increase of 0.6% from a month before. Home sales are just below the record for November, set a month before…read more.