Canada Home Prices Increased in June 2011

Canada home prices rise in June 2011

Canada home prices rise in June 2011

Home prices in Canada continued to rise in June 2011*, despite economists’ predictions of a cool down in real estate costs.

The national average price for a home in Canada in June was $372,000 – that’s a rise of almost 9% from June 2010, although it has decreased by almost 1% since May 2011.

Canada home prices 2011

All this despite the fact that the Bank of Canada raised interest rates in June 2011, for the first time since the recession hit. According to Bank of Montreal economist Robert Kavcic, June home sales increase was the fastest paced on record since April 2010. Now that’s nothing to sneeze at.

Some Canada real estate experts in the industry are not speculating that prices have reached their inevitable peak and expect to see drops in home purchases in Canada, especially now that interest rates are starting to rise.

Sonya Gulati, an economist at TD, believes that the mini reprieve is fleeting and sales gains should be muted for the remainder of the year and into 2012.

Canada home prices to decline into 2013

Gulati believes that Canada home prices will decrease by 10% from late 2011 into 2013 and that sales will decline by 15%.

“The lag between sales and prices usually comes in between two to three quarters. In turn, we anticipate prices to temper early next year,” said Gulati.

June 2010

June 2011

Canadian Home Resales

$339,636

$372,000

However, while year for year saw an increase in Canada home prices, the first quarter of 2011 was stronger than the second, as national sales activity in the second quarter was down 4.7%.

What are your plans for a home purchase? Do you plan on buying or selling a home soon?

*Source: Canadian Real Estate Assocation (CREA)

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Rosy Saadeh

About Rosy Saadeh

Rosy Saadeh is a Social Media Manager and Marketer and spends her time scouring the net trying to make new friends, help clients and post interesting stories about real estate and the like in Canada. Connect with her on Twitter, Facebook, Google+, and Pinterest.

2 comments

  1. The world of housing, financing, mortgage and foreclosure is awful. I just lost my house and its terrible.

  2. Diane Medina says:

    Great, now I’ll never be able to afford a house.

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