The country’s closely watched housing market continued its strong upward climb in June, with average prices marching 9.6 per cent higher led by – surprise – gains in Vancouver and Toronto.
The average selling price of an existing residential property hit $453,560, up from $413,832 a year ago. The number of home sales across the country jumped 11 per cent in June versus the same month last year.
“Low interest rates are unquestionably helping boost consumer confidence and home sales activity this summer,” Pauline Aunger, president of the Canadian Real Estate Association, said in a release.
Low rates helped set a new sales record in the Greater Toronto Area, according to CREA, the country’s largest housing market. The sales data for June comes on the same day the Bank of Canada announces it’s next interest rate move.
Home prices in Calgary, where lower crude prices are taking a toll on housing demand, dipped 0.2 per cent year on year, to $465,965. The economic slowdown has hardly hit prices outside of oil-dependent regions, however.
Home prices in the Greater Vancouver Area jumped 15.8 per cent, to an average of $922,326. In Toronto, prices climbed 12.3 per cent to $639,184.
“On the other hand … there are plenty of compelling reasons to not cut rates. Namely, a hot housing market and accelerating household credit growth,” Kavcic said.