A sluggish property market in
Vancouver is dragging down the average price of a property in Canada, according
to new research. New figures from the Canadian Real Estate Association show that
the average value of a home in the city has fallen by 3.8 per cent in the last
year, which is having an impact on the countryââ¬â¢s average house price.
Keep reading to learn why
Canadaââ¬â¢s property market is actually performing better than the latest figures
may suggest.
Average house price in Canada up 1.1 per cent in last year
The latest report from the
Canadian Real Estate Association (CREA) found that the average home price in
Vancouver was down 3.8 per cent in September from a year earlier.
CREA said that this data skews
the national average price, which was up 1.1 per cent. Excluding Vancouver, the
national average price was up 3.4 per cent from a year ago.
Gregory Klump, CREA’s chief
economist, said the drop in Vancouver was caused by fewer really expensive
sales this year compared to last year.
“Last year, the average was
pitched higher by a whole bunch of high-priced sales, while this year, those
sales haven’t recurred, so it’s lower.
ââ¬ÅI like to use the following
analogy: If you line the kids up in class from shortest to tallest and take the
average height, and then you excuse the 10 tallest kids and recalculate the
average, then the average height will have shrunk, but none of the kids
have.”
The number of properties sold in
Canada in September fell by 15.1 per cent from a year ago, although sales were
up when compared to August.
“While some first-time
homebuyers may no longer qualify for mortgage financing under the new rules, it
is likely that many others are stepping back and reassessing how much house
they can realistically afford, which is one of the things new mortgage rules
were designed to do,” Klump said.
The Vancouver Sun reports that while Vancouver’s home price index fell,
Calgary had a 6.5 per cent increase in the index, the Toronto area was up 5.7
per cent, the Montreal area was up 2.2 per cent and the Fraser Valley was up
2.1 per cent.
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