April 29, 2010
The big boom in Canadian real estate is slowing down. These are the conclusions one may draw from Teranet’s new House Price Index figures, released yesterday.
According to Teranet, there was actually a drop in home prices from January to February 2010 in both Ottawa and Calgary. Montreal prices didn’t move up or down. Toronto, Halifax and Vancouver moved upwards. The average monthly gain of all tracked Canadian cities was only 0.2% which is the smallest gain in 10 months!
One should keep in mind that the report is for February – the date today is April 29. The current vibe in the Toronto residential real estate scene is that things are even slower now then they were in February. I know of two Annex properties that were priced especially low to attract multiple offers last week and on offer day not a single offer arrived.
Calgary is in even worse shape and is questioning why the city has been left out of the housing recovery entirely. The Calgary Herald noted that Calgary is the only major Canadian market yet to top its pre-recession peak according to the Teranet index.
Without a doubt the market is shifting. Buyers market, sellers market, boom, bust, crazy. If I were to bet my money I’d say the Canadian residential real estate market will continue to cool but continue to rise albeit gradually for the foreseeable future.