Several Canadian real estate markets showed increased strength in May, according to Statistics Canada’s latest New Housing Price Index.
“The New Housing Price Index (NHPI) rose 0.7% in May, following a 0.3% increase in April,” StatsCan said in its report. “This was the largest monthly advance since July 2007, and was mainly driven by higher new housing prices in the combined region of Toronto and Oshawa and in Vancouver.”
According to the report, new housing prices rose 1.1% in Vancouver and 1.1% in Victoria; new home prices have seen 12 months of consecutive increases in Vancouver – but the price gains were also felt across the country.
St. Catharines-Niagara (+0.9%) and Windsor (+0.8%) also reported “significant price gains,” according to StatsCan.
“Builders in St. Catharines–Niagara cited market conditions as the main reason for the rise, while builders in Windsor reported higher material costs and land development fees,” the Crown Corporation said. “This was the largest monthly increase in Windsor since August 2013.”
Over the past 12 months, a number of markets also showed renewed strength.
“The NHPI rose 2.7% over the 12-month period ending in May, the largest increase at the national level since September 2010,” StatsCan said. “The combined metropolitan region of Toronto and Oshawa (+6.4%) was the top contributor, recording the largest year-over-year price increase in May. This was the largest year-over-year price gain in the region since July 2004.”
Again, gains were felt across the country.
“Other notable increases were observed in Vancouver (+5.1%), St. Catharines–Niagara (+3.6%), Hamilton (+3.1%), Victoria (+2.4%) and Ottawa–Gatineau (+0.2%),” StatsCan said. “This was the largest year-over-year price advance in Vancouver since June 2010, and the first year-over-year increase in Ottawa–Gatineau since June 2013.”
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Although those two markets continue to perform well, a number of additional markets are also showing considerable strength.