Led by Toronto, home price gains blow past expectations

New home prices in Canada blew past expectations in October, led by gains in Toronto’s booming housing market, according to a Reuters report.

Economists had predicted a slight month-over-month gain of 0.1% nationwide, according to Reuters. However, Canadian new home prices rose 0.3% in October. The Toronto and Oshawa region led the increase. In that region, prices were up 0.5%, with builders citing market conditions and higher land costs as prime movers in the increase.

On an annual basis, prices were up 1.5% nationally in October – the largest year-over-year increase since December of 2014, according to Reuters. The Toronto and Oshawa market saw an annual gain of 4% – the largest since January of 2013.

In Calgary, meanwhile, prices were unchanged, according to Reuters. Prices in the area have been stifled in the last year by the oil slump.

The continued rise of home prices in Canada has led some analysts to worry that Canadians may be taking on more debt than they can handle, Reuters reported.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Investment Hot Spots:
Egbert, Beaconia, Troy, St. Edward, Clarendon

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?