15 August 2019

The average home price at a resale market rose by 3.9% annually to $499,000 in July. Nevertheless, CREA believes the average number could be strongly affected by the results of large, expensive cities. That’s why they use the House Price Index for a clearer picture, as it adjusts for the size of the market and the type of real estate.

Last month, the HPI went up by 0.2% from a year ago, marking the first increase since January.

CREA says 11 of the 18 housing markets reported index gains, especially in central and eastern Canada.

Ontario saw significant hikes in the following markets, including the following results: Guelph (6.9%), The Niagara Region (5.9%), Ottawa (8.9%), Hamilton-Burlington (5%), Oakville-Milton (5%), The GTA (4.4%), Barrie (-1.3%).

“The risk of an immediate decline has been reduced sharply”, – TD Bank economist James Marple said. “Although affordability will still be a constraining factor in the most expensive markets, prices will probably go up rather than down during the next year”.