The value of Canadian real estate increased again in February, with the average home price selling at $816,720.
The MLS Home Price Index posted a month-over-month gain of 3.5% and a 29.2% increase compared to last year. Even after removing some figures due to volatility.
Ontario has seen its average home price surpassing the million-dollar mark, increasing almost 26% year-over-year to $1,086,493.
Existing home sales increased, up 4.6% from January, while new listings saw a 23.7% uptick. The boost was led by activity in the Greater Toronto Area, Calgary and the Fraser Valley.
This boost resembles the pattern seen in 2020 and 2021, as noted by CREA’s senior economic expert Shaun Cathcart.
“The real question is, what comes next? In the short term, expect at least one more month of stronger sales as the majority of those new listings came onto the market near the end of the month, so many of the associated sales likely won’t happen until early March,”.
“Ideally, listings will continue to come out in big numbers in the months ahead. Combined with higher interest rates and higher prices, we could be at a turning point where price growth begins to slow down and inventories finally begin to recover after seven years of declines.”
Housing inventory remains at an all-time low of 1.6 months compared to the average 5 months.
If we remove outliers in high-priced markets like Toronto and Vancouver, the average home price is $638,720. A $110,629 increase from a year ago.