But that’s not the whole story. Even within cities, the variations in how different neighbourhoods have fared can be significant.
So Brookfield RPS pored through its data for some of Canada’s major centres for The Globe and Mail and determined which areas (it breaks them down by the first three digits of their postal code) have had the strongest price appreciation over the last five years. Top bragging rights go to those people who bought detached houses in Vancouver’s Dunbar neighbourhood in 2009, where the average price has more than doubled.
The best performing neighbourhoods for five-year price appreciation of detached homes in Vancouver are Dunbar, North Dunbar and the Queen Elizabeth Park area, which collectively saw prices rise a whopping 96 per cent. For condos, the top spots were the West End, Davie Village and New Westminster, which collectively saw prices rise 45 per cent. In comparison, the city-wide average price for all types of homes rose by 29 per cent.
Vancouver’s market has rebounded from its slump, and prices of detached homes have hit new records. The benchmark price of houses was up 6.6 per cent year-over-year in August, to $984,300, according to the Real Estate Board of Greater Vancouver. The benchmark price of condo apartments rose 3.6 per cent to $379,200.
When it comes to detached houses in Montreal, the neighbourhoods whose prices have performed the best over the past five years are Westmount, Saint Laurent and Verdun. They collectively saw prices grow by 59 per cent. As for condos, the top locations for price growth were Saint-Lambert, Bois Chomedey and Nouveau-Rosemont, which collectively saw condo prices rise 69 per cent. In comparison, the average price of all types of homes city-wide increased 18 per cent.
Montreal’s housing market is currently showing signs of struggling, with the number of homes that changed hands during August coming in 6per cent lower than a year earlier, according to the local real estate board. Each of the main areas that the Greater Montreal Real Estate Board tracks – the North Shore, Laval, the South Shore, Vaudreuil-Soulanges and the Island of Montreal – saw sales fall last month. Sales fell by only 4 per cent in Vaudreuil-Soulanges and on the Island, making those the best performing neighbourhoods. The median price of a home in Montreal is currently $285,000, unchanged from a year ago.
The top neighbourhoods for price growth of detached houses in Canada’s most populous city were Willowdale, Agincourt and Newtonbrook. Average prices in all of these neighbourhoods combined rose by 75 per cent over five years. The top areas for condo price growth were the Fairview Mall neighbourhood, Cabbagetown and the area around Church and Wellesley Streets. Collectively their condo prices rose by 47 per cent. That compares to average price growth of 43 per cent for all types of properties throughout the city.
At the moment, prices of detached homes in Toronto’s downtown core are outperforming those in the surrounding areas. The average price of a detached home in the central 416-area-code was up 14.7 per cent year-over-year in August, while the average price of a detached home in the suburban 905-area-code rose by 9.3 per cent, according to the Toronto Real Estate Board. The same trend does not hold true for condos, because the plethora of new towers under construction in the downtown core has been constraining prices. The average resale price of existing condos downtown rose by 4.1 per cent in August, while those in the 905 area rose by 5.4 per cent.
The best areas to have bought a house in 2009, from a price appreciation point of view, would have been Killarney, South Calgary and Hillhurst, where average prices collectively rose 36 per cent in the period since. For condos, the places to have bought were the Beltline, Elboya, and Edgemont and the Hamptons. Those areas collectively saw condo prices rise by 24 per cent. The average price of all types of homes across the city rose 22 per cent.
Detached homes have become less affordable in Calgary in recent years, causing a significant rise in condo sales. Sales of existing condos rose 14 per cent year-over-year in August, while sales of single-family homes fell 2.4 per cent, according to the Calgary Real Estate Board. The benchmark price of a single-family home is now $512,300, up 10.24 per cent from a year ago. The benchmark price of a condo is $298,200, up 10.2 per cent.
Source: Tara Perkins, The Globe and Mail
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