Stats Canada has just reported that despite a pandemic, real estate prices have risen to its highest level in years. Low interest rates have no doubt helped surge the biggest rise since 2017. This data indicates detached homes making up for the majority of the gains, while condo sales are on the decline compared to last year.
Canadian real estate prices experienced one of its most significant jumps on record. The 6-City Index had its price increase by 2.5% in Q4 2020, the biggest jump since Q2 2017. Most of the gains are from single-family homes which rose 3.5% from the previous quarter.
A rarity for the Toronto market, where it actually underperformed relative to real estate growth in the 6-City Index. Prices for Toronto's composite increased by just over 2 percent in Q4 2020, as detached house prices increased by 3.54%.
Canadian Urban Real Estate Price Index Change
Source: StatCan
Vancouver's composite for home prices jumped 2.44% in Q4 2020, a fairly considerable increase. Single family home prices grew 3.57%, the most significant jump since 2017. As condos remained flat, the index was driven once again by single family home activity.
Montreal experienced serious growth in Q4, as the composite increased by 3.98%. Single family home prices rose by 4.58% during the last quarter, as condo prices moved a little slower at 3.13%.
This data mostly indicates a surge in single family home activity and relative stagnation for condos. Statistics Canada sees low interest rates as the main reason for this trend. Rising household credit availability and allocation has pushed single family home demand as well.