Home prices in Toronto have climbed higher and higher over the last few years, but numbers released this month from the Canadian Real Association (CREA) show just how fast the acceleration has been.
The MLS Home Price Index for the GTA reached $557,900 in June 2015. This was an 8.94 per cent increase over the same time last year. Torontonians may no longer be shocked about year-over-year price increases of this size, but consider this: the Home Price Index in the GTA was also up 38.38 per cent from five years ago.
It was the biggest such increase measured by CREA, beating out Greater Vancouver, which recorded an increase of 20.58 per cent in five years and Calgary, which saw the index rise at a rate of 18.21 per cent.
The majority of regions studied by CREA saw a five-year increase. Two areas in British Columbia, Victoria and Vancouver Island, bucked the trend and saw decreases of 3.93 per cent and 0.32 per cent, respectively.
Compared to average sale prices, the Home Price Index is seen as a clearer indication of how markets change since, unlike averages, it isn’t impacted by changes in the mix of sales activity.