Since last December, the average home across the country has increased by 11.8%, (a 23% rate if annualized) which is phenomenal since our prime rate too has been increasing over that period. Sales volumes too are up, by 3.6% on a year-over-year basis.
The average house price across the country is now $304,328 (about $272,000 USD), which compares to about $231,000 (USD) for America.
Price increases are being led in oil-rich Alberta, which is facing rises of 40% annually. Although prices have seen a dramatic increase, most market commentators say that the Canadian market, overall, isn't as vulnerable to a downturn as the US market, for two reasons:
- If Alberta is stripped out of the price picture, the average price increase is much more sensible, and
- Interest rate increases have been subdued here, and our prime rate about 2% below the US prime rate.
The Confused Capitalist