Toronto, Vancouver set new home price highs

March 14, 2022


Small 66-year-old house in the Metro Vancouver suburb of Burnaby sold in March for $2,625,000—about $437,000 over list price.| REW.ca

After three years of multiple government attempts to bring down the cost of housing in Canada’s two hottest housing markets one thing has become clear: They have all failed.
In February 2022, the average price of a home in both Greater Toronto hit record highs, and at a level few would have thought possible a few years ago.
In Greater Toronto, the average selling price of a home jumped 27.7 per cent to $1,334,544 in February year-over-year, marking another all-time high, according to the Toronto Real Estate Board. Average selling prices have posted new records in five of the past six months.
In Greater Vancouver, the composite benchmark price of a home hit an all-time high of $1,313,400 in February—20.7 per cent higher than February 2021 according to the Real Estate Board of Greater Vancouver (REBGV). The price of a typical resale detached house in the region has increased 25 per cent since February 2021 to a record high of $2,044,800.
“A lack of housing supply is at the heart of the affordability challenges in Metro Vancouver today. We need more coordinated action from stakeholders at all levels to help create an ample, diverse supply of housing options for residents in the region today and into the future,” the REBGV noted.
The data comes on the heels of the Bank of Canada raising its benchmark interest rate by 25 basis points to 0.50 per cent—the first hike since 2018.
Until borrowing rates rise further or housing supply increases to better match demand, most economists don’t foresee there being a meaningful reduction in housing prices in either Toronto or Vancouver.