Canada’s Sizzling Housing Market
The price of a residential home in Canada surged +12.9% from a year ago to $303,836 in May, topping $300,000 for the first time, according to sales tracked through MLS by the Canadian Real Estate Association.
Alberta’s resale market led the gains, with home prices in Calgary soaring 43.6 per cent to $358,214. Home prices in Edmonton jumped 23 per cent to $242,936, in Vancouver they rose 23.7 per cent to $518,176, and in Toronto they rose 5.5 per cent to $365,537.
The booming labour market, rising incomes, and resilient consumer confidence is boosting sales, despite rising interest rates and home prices. It’s definitely starting to look like a bubble. With the double-digit increases of late, I would not advise going into the housing market at this time. It’s only a matter of time before a slowdown is in place.