Photo: Kurt Bauschardt/Flickr
Just because the Loonie is worth a lowly 77 cents US, that doesn’t mean Americans won’t feel the heat of Canada’s housing market.
Sure, Americans may have a higher-valued currency, but those looking north of their border for real estate bargains may be disappointed. In fact, BMO Senior Economist Sal Guatieri recently noted that not only has the average selling price of a Canadian home cracked the $500,000 for the first time, in US dollars it has achieved another milestone.
This March, the average sale price of a Canadian existing home in US funds soared to its highest point ever at $383,402, putting it 41 per cent higher than the average stateside price of $271,803, according to Guatieri’s calculations in a chart release.
“That’s a big reversal since the start of the millennium, when housing was much more expensive south of the border (even before the US bubble) thanks, in part, to the lowly loonie at the time and more reasonably-priced properties in Vancouver and Toronto,” writes Guatieri.
The Canadian Real Estate Association (CREA) makes the influence these two markets have on national home prices clear.
CREA says the average price of a home in Canada in March soared 15.7 per cent year-over-year to $508,567. But in an oft-cited stat, if you exclude Greater Vancouver and Greater Toronto, that number free falls to $366,950, the association says.
“While these two cities in no way represent the national average price, they certainly have a major effect on it, as they now account for half the value of Canadian home transactions,” Guatieri concludes.