OPINION: The dichotomy continues on the Canadian home resale market. Year-over-year price growth exceeds 10% in Vancouver, Victoria, Toronto and Hamilton, while deflation persists in the seven other regions covered (top chart). New trends are also emerging. First, Vancouver is in a league of its own with prices up more than 20% over the last twelve months. Second, the surge in house prices in that city does not anymore mostly characterize single-family homes (price up at a record 25.1% in May) but also condos (prices up 13.9% in May against 6% in January – middle chart). To a lesser extent, this new trend also applies to Toronto. In that city, availability of land had restricted the supply of low-rise residential buildings, and steep house price growth used to be concentrated in that segment. But with record sales of apartments since the beginning of the year, condos prices have moved up in sync with those of other types of dwellings lately (bottom chart). The generalization of steep price growth to condos should feed concerns about affordability in these metropolitan areas and household indebtedness.

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