Home prices in Canada have jumped another $29,000 and have never risen faster

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Real estate prices in Canada are moving at record speed these days. Canadian Real Estate Association (CREA) show that house prices hit a new high in January. Although they have not only reached a record high in price, but also in growth rate. Despite warnings of higher rates and a regulator calling the market a bubble last month, buyers were undeterred. They sank and continued the most aggressive price growth in Canadian history.

Home prices in Canada jumped $29,400 in January

The typical price of a home in Canada is skyrocketing like never before. The composite benchmark price reached $825,800 in January, up 3.69% ($29,400) from the previous month. Compared to the same month last year, prices are 28.01% higher ($180,700). Again, this is for a typical home across Canada — not one or two tight markets. Almost anything with four walls and a roof brings in half of a worker’s median annual salary, in just one month.

Benchmark Canadian Residential Real Estate Prices

The composite benchmark price of a house in Canada, in Canadian dollars.

Source: CREA; Live better.

Home prices in Canada have never risen so fast

The annual growth in house prices not only looks high, it has never increased so rapidly before. Growth hit a new high of 28.01% in January, far surpassing the previous peak of 17.75% in April 2017. The addition of $180,700 in one year represents double the median annual gross income across the country. Vancouver’s booming growth is now the rule for the entire Canadian market, not an exception.

Canadian Residential Real Estate Benchmark Price Growth

The 3-month (annualized) and 12-month percentage growth of the composite benchmark price of a home in Canada.

Source: CREA; Live better.

House price growth has accelerated

Short-term growth indicates that things are not slowing down either, they are speeding up. The 3-month annualized growth rate reached 33.49% in January. This trend has shown a steady acceleration since its abrupt reversal in September 2021.

Overall, this trend indicates that there is a little more steam left for growth. However, at such high levels, one would think that growth will soon peak. However, people probably felt this a year ago as the previous record neared.

Home prices in Canada are rising at the fastest pace on record and show few signs of slowing down. Annual growth has reached a new record, and there are signs that it is accelerating. Higher rate warnings or regulators warning of a bubble haven’t even dampened the growth rate. All buyers see is a lack of inventory and their last chance to buy a home. Ironically, the lack of inventory should be resolved when house price growth slows.

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