Chief Executive Officer of Royal LePage, Phil Soper, says irrationality in the housing market is occurring in Canada’s largest cities.
Royal LePage released a survey indicating the average price of a two-storey house in Canada this year is 10.3 per cent higher compared to last year’s average price of $365,141. Two-storey home prices increased 5.2 per cent in Edmonton and 6.8 per cent in Halifax, but 13.2 per cent in Toronto and 19.2 per cent in Vancouver.
Bidding wars are a continuing trend in Toronto and Vancouver.
Soper says the market boom is regional not national and rising interest rates and housing prices will eventually slow the market as houses become less affordable.
David Dodge, former Central Bank Governor, agrees, saying that housing prices seem high and will likely fall.
Canada’s house prices risen 2.4 per cent annually for the last 50 years.
Year-over-year, first quarter house prices in Toronto, Montreal and Vancouver have risen a minimum of 7.2 per cent. Toronto’s bungalow prices rose 13.3 per cent to $459,107, two-storey prices rose 13.2 per cent to $562,150 and condos rose 10 per cent to $317,759.
Montreal’s bungalow prices rose 7.2 per cent to $249,172, two-storeys rose 7.6 per cent to $255,109 and condos rose 7.6 per cent to $222,244.
Vancouver’s prices showed the biggest jump, with bungalows rising 21.8 per cent to $906,045, two-storeys rising 19.2 per cent to $987,500 and condos rising 15.7 per cent to $470,000.
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