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Average house price hit record $748,450 in January — up 21% in past year

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Cold weather did little to chill out Canada's red-hot housing market in January, with the Canadian Real Estate Association reporting that average house prices have increased by 21 per cent in the past year to $748,450 — the highest on record.

Canada's housing market has been on fire during the pandemic, with prices pushed up in large part due to record-low mortgage rates.(Larry Downing/Reuters)

Cold weather did little to chill out Canada's red-hot housing market in January, with new data Tuesday showing average house prices have increased by 21 per cent in the past year to $748,450 — the highest on record.

The Canadian Real Estate Association (CREA), which represents more than 100,000 Realtors across the country, said Tuesday that the volume of homes being sold has plateaued, largely because of a lack of inventory. But prices continue their record-setting ascent.

After a brief lull early in the pandemic, Canada's housing market has been on fire for the better part of two years now, as buyers have taken advantage of record-low interest rates to buy larger and more expensive homes.

January is typically a slow month for the housing market, as buyers and sellers tend to stay on the sidelines until the spring. But COVID-19 has done away with those seasonal trends: January 2021 was the busiest January for home sales on record, CREA says, and 2022 was the second busiest ever.

CREA notes that the average selling price can be misleading, because it can be skewed by sales in large, expensive markets like Toronto and Vancouver. So the Realtor group touts a second figure, known as the Multiple Listings Service House Price Index (HPI), as a better gauge of the market, because it is adjusted based on the type of housing sold in every market.

But the HPI, too, has never been higher. It increased by 2.9 per cent in January alone — another record. And on an annual basis, it's up by 28 per cent — also the highest it's ever been.

More to come.

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Credit belongs to : www.cbc.ca

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