Market Update for August 21st
The massive increases this year represents a significant portion of gains made over the past 3 years. Montreal real estate prices are up 14.04% in July, compared to last year – making up almost half of the 29.21% increase made over the past 3 years. Toronto’s 10.11% increase over the past 12-months, contrasts with a 14.51% increase over the past 3 years. In Vancouver, prices increased 4.83% over the past 12-months, but just 1.61% over the past 3 years. For Toronto, this means the past year has seen growth twice as fast as the previous two years.
Sales have also been helped by low mortgage rates with rates for five-year fixed-rate mortgages being offered at less than two percent. The robust price growth right across the country, comes even as indicators like employment, rental rates, and immigration fall. When prices rise across the board despite a breakdown of these indicators, its almost certainly a result of too much easy credit.