15 August 2018

According to economist Doug Porter from the Bank of Montreal, the real estate market is now in what experts call a “Goldilocks” zone.

“The main thing is that the housing market is already not the largest source of concern for policymakers, as it’s neither too hot, nor too cold,” – Porter explained.

However, CREA believes the average numbers can’t show the real picture, as they are pushed up by Toronto and Vancouver. That’s why it also uses the Multiple Listings Service Housing Price Index (MLS HPI), which excludes all the volatility.

HPI shows that real estate prices were up by 2.1% annually last month.

British Columbia keeps showing high numbers: prices in Greater Vancouver rose by 6.7%, Fraser Valley reported a 13.8% increase and Victoria saw an 8.2% gain.

Prices in the GTA were down by 0.6% annually, while Ottawa reported a 7.2% gain and Montreal saw a 5.7% hike.

“Home sales in July rose for the third month in a row, with prices also going up,” – TD Bank economist Rishi Sondhi said. “It supports our idea that the markets have started recovering from the previous weak results caused by the stricter mortgage rules”.